Biden Mirrors Trump on China Tariffs

What’s happening: President Joe Biden is considering expanding Trump-era tariffs to protect industries like solar panel manufacturing and electric vehicles (E.V.s) — which he considers key to the American economy.

Why it matters: Donald Trump reversed the Republican Party’s post-Cold War free-trade consensus. As Biden seeks reelection, he too is embracing protectionist measures to rally support from swing state workers, creating a bipartisan consensus on economic policy.

The party of free trade: During his presidency, George W. Bush signed free trade deals with 13 countries. When Mitt Romney campaigned for president, he critiqued Obama for failing to sign new trade agreements.

• Democrats, too: Barack Obama negotiated and signed the Trans-Pacific Partnership (TPP), a massive free trade agreement between 12 Pacific Rim countries.

The Trump realignment: Upon entering the White House in 2017, Trump reversed this momentum. He canceled America’s involvement in the TPP, signed no new trade agreements, and demanded renegotiation of NAFTA.

• Trade war: Trump set global tariffs on steel and aluminum and took action to block the flood of cheap Chinese goods into America’s markets. He raised Chinese auto tariffs to 27.5 percent, prompting retaliation; China raised tariffs on U.S. auto imports.

Biden’s moves: President Biden upheld Trump’s tariff on Chinese E.V.s, which are flooding European markets. He has not endorsed new trade agreements, nor has he sought to revive the TPP.

• Domestic production: In addition to taxing foreign goods, Biden has pursued an aggressive domestic industrial policy. Specifically, he is promoting construction of semiconducting manufacturing facilities in an attempt to wean the U.S. from Chinese and Taiwanese reliance.