From the ports of Los Angeles to the cornfields of Iowa, U.S. international trade policy is a force shaping the lives of each American. With the November 2024 presidential election approaching, discussing trade policy will not be just an educational exercise – it’s a civic responsibility.
as economistI even have spent years studying this topic. Trade policy has a huge impact on the best way industries operatefrom production locations to competitive dynamics. These changes impact on a regular basis life, from the associated fee of your morning coffee to job security in your area people.
And since the president has broad control over trade policy, each presidential election is a referendum on the difficulty.
The two most up-to-date administrations – President Donald Trump and Vice President Mike Pence from 2017 to 2021, and President Joe Biden and Vice President Kamala Harris from 2021 to present – have taken very different approaches to trade policy. The contrast shows how the president’s economic philosophy can reshape the country’s global business strategy.
Both Trump and Harris will be on the ballot in November. Harris is Biden’s trade policy is anticipated to proceed if he wins. This comparison provides insight into how the next U.S. president will manage trade.
2017–2021: Trump and Pence on trade
During his time in office, Trump pursued a protectionist trade agenda.
Protectionism refers to government policies that restrict international trade to profit domestic industries. These measures include tariffs – taxes on imported goods – quotas and regulations that make imports costlier.
One of the Trumps first official acts was withdrawal from the Trans-Pacific Partnership, a colossal 12-nation pact that might cover 40% of world production. His decision cost America each access to lucrative Asian markets and a powerful counterweight to China’s economic influence.
Closer to home, Trump renegotiated the North American Free Trade Agreement (NAFTA). United States-Mexico-Canada Agreementtightening regulations for automotive manufacturers. Effect? However, the remuneration of employees in the automotive industry and vehicle prices for American consumers increased, it hardly stimulated any additional domestic automotive production.
Trump also introduced tariffs trade war with China and the European Union, claiming that it might solve unfair practices and reduce the US trade deficit. This strategy, nonetheless, triggered retaliatory tariffs that resulted in higher consumer prices and job losses in American industries depending on imported components. While some sectors have benefited from this approach, U.S. farmers have suffered from export losses, requiring government subsidies.
Trump and his latest running mate, J.D. Vance, have signaled their intention to revive their “America First” trade strategy. Their campaign platform calls for large tariffs, including: general rate of 10% on all goods and more aggressive 60% customs duty aimed specifically at Chinese products.
2021-today: Biden and Harris on trade
In turn, the Biden-Harris administration has adopted a multilateral approach, emphasizing cooperation between countries.
Administration kept most of Trump’s tariffs on Chinese goods in place and part for importing steel and aluminum from other countries. However, they’ve reframed the measures under: wider push stop climate change and protect staff’ rights.
The administration has also launched initiatives equivalent to An Indo-Pacific economic framework for prosperityor IPEF, signaling a return to Obama-era trade strategies that prioritize regional partnerships in the Pacific. IPEF goals to strengthen economic ties with Asian countries by coordinating policies to increase supply chain resilience and promote clean energy, relatively than focusing solely on tariff reductions.
The Biden-Harris approach emphasizes international cooperation while valuing domestic job creation, particularly in the clean energy and manufacturing sectors. However, lots of Trump’s tariffs on Chinese goods, steel and aluminum have been maintained costs high for some US businesses and consumers.
Building on Biden administration policies, Harris’ campaign has signaled that its goal is to protect lower- and middle-income households from latest tariffs this might raise prices while maintaining a tough stance on China through existing tariffs and trade restrictions.
Presidential powers and influence on trade
The president plays key role in determining US trade policy.
The president can negotiate international trade agreements, although Congress must approve them to grow to be law. The executive branch also controls tariffs; under laws equivalent to the Trade Act of 1974, the president can impose them without the consent of Congress.
In addition, the president can declare a nationwide trade emergency, appoint trade representatives, issue executive orders to administer federal trade policy, and impose sanctions that may affect global trade dynamics.
Free trade agreements can boost exports and promote economic growth, but they may displace some staff. However, import tariffs protect some domestic industries, but raise prices for American consumers. Studies show that tariffs imposed under Trump and continued by Biden have led to higher prices, reduced production and declining employment, harming US economy.
Trade policy also affects diplomatic relations and global supply chains. So when voters review candidates’ trade policy positions, they need to look beyond the bits they hear. Understanding how each approach affects labor markets, consumer prices and global competitiveness will help voters solid informed votes that align with their vision for the country’s future.
In the world of trading, every vote counts.
