Trump Proposes New Tariffs, Biden Maintains Trade Policies

Former President Donald Trump, known for his aggressive trade measures during his first term, has proposed new tariffs targeting all foreign trading partners if he wins the 2024 presidential election. Trump has called for a 60% tariff on all Chinese goods and a minimum 10% tariff on all U.S. imports worth $3 trillion. Research from the Peterson Institute for International Economics indicates these measures would cost U.S. consumers $500 billion annually, or 1.8% of GDP. This would significantly affect the typical middle-income household, costing them at least $1,700 annually.

President Joe Biden has also continued using tariffs as a policy tool, keeping many Trump-era tariffs in place and expanding them in targeted areas. Recently, Biden increased tariffs on $18 billion worth of Chinese goods, including steel, aluminum, and electric vehicles. Treasury Secretary Janet Yellen has urged Europe to join the U.S. in addressing China’s industrial overcapacity. Biden’s tariffs are estimated to cost the average family about $30 annually, according to former Treasury official Kimberly Clausing.

Despite bipartisan support for tariffs in Washington, economists warn that such measures could harm the U.S. economy by causing job losses, increasing inflation, and reducing GDP growth. Internationally, these policies may also strain relationships and complicate collaboration on global issues.

Both administrations’ strategies reflect growing concerns about China’s trade practices and the need to protect domestic industries. However, differing approaches and impacts highlight the complex dynamics of contemporary U.S. trade policy.