As president, Donald Trump imposed a 25% tariff on foreign steel, impacting companies like Clips & Clamps Industries, a Michigan auto supplier, by raising material prices and causing them to lose contracts. Surprisingly, President Joe Biden has largely maintained Trump's tariffs on steel, aluminum, and Chinese goods, despite their differing ideologies. Both candidates have embraced protectionist trade policies, reflecting concerns about American manufacturing job losses and the impact of imports, particularly from China.
The protectionist stance of the candidates is crucial in key industrial states like Pennsylvania, Michigan, and Wisconsin, which could determine the election outcome. The shift away from free trade, a long-standing U.S. policy post-World War II, stems from the belief that free trade benefited corporations but harmed American workers.
While Trump's tariff strategies aimed to reduce trade deficits and protect American industries, they did not significantly revive manufacturing or reduce deficits. Biden, on the other hand, supports industry subsidies and strategic tariffs to enhance competitiveness and address national security concerns, particularly regarding China's technological advancements.
The discontent with free trade and China's growing influence has led to bipartisan efforts to reduce reliance on Beijing for critical supplies. Trump's aggressive trade actions, including tariffs on Chinese products, failed to bring back jobs as intended and resulted in retaliatory measures that hurt American farmers and businesses.
Despite the economic costs of protectionism, both candidates advocate for policies that prioritize American workers and industries. Biden's approach focuses on rebuilding manufacturing capacity and investing in green technologies, aiming to strengthen the U.S. economy while addressing trade imbalances and security threats posed by China.
Overall, the consensus on the need for a shift in U.S. trade policy has been building for years, with both Trump and Biden reflecting this sentiment through their protectionist trade agendas.
