Trump vs Harris: The Economy

• Trump's plan centers on bringing jobs back to the US through tariffs, especially against China

• Union workers are shifting toward Trump, while Democrats embrace being the party of elites

• Harris promotes targeted, equity-driven policies and expanded government programs

Where Trump stands

With just two weeks until the election, the economy remains the top issue for voters.

Donald Trump has laid out his economic vision, which remains firmly rooted in his "America First" approach, specifically aiming to bring back manufacturing jobs to the US. This has been a key focus since his first term, and his running mate, Sen. JD Vance (R-OH), has been a leading advocate for revitalizing America's manufacturing base.

Trump’s proposed 20 percent tariff on all imports — and a 60 percent tariff on Chinese goods —intends to end America’s dependency on cheap foreign labor. Tariffs resonate with voters who have felt abandoned by globalist economic policies, especially in blue-collar and union-heavy states like Ohio and Pennsylvania.

Donald Trump recently secured an endorsement from Pennsylvania steelworkers, with one worker stating that Trump "saved the steel industry with tariffs.”

The media often cites that the trade deficit soared under Trump’s presidency despite his campaign promise to reduce it. While the overall deficit increased during his tenure, America’s trade deficit with China fell sharply by the end of his term, which, per Trump, was an important metric of success.

As president, Trump oversaw a robust economy that saw 50-year lows in unemployment rates, particularly for black Americans, Hispanics, and women. The stock market also reached record highs, and economic growth averaged around three percent, a notable improvement from previous years. Further, the US became a net exporter of oil and natural gas for the first time in decades.

Many have attributed Trump’s economic growth to his focus on deregulation, corporate tax cuts, and his confidence boosting in US markets. Although critics claim these policies only favor the wealthy, historically, reducing regulatory hurdles and lowering taxes has been an effective way to stimulate the economy. Similar strategies were key to the economic boom during Ronald Reagan’s presidency.

Where Harris stands

Kamala Harris has been critical of Trump’s tariffs, labeling them a "Trump sales tax" that harms consumers by raising prices. However, under the Biden-Harris administration, many of Trump’s tariffs remained in place, an acknowledgment that some of these policies were actually effective in protecting American industries.

She also touts raising the child tax credit to $6,000, an idea Vance recommended just days prior. She also pushed to end taxes on tips in the service industry two months after Trump did so.

Harris is additionally trying to position herself as a champion of small businesses, but voters remain unconvinced, with Donald Trump leading her by nine points on economic trust. She promises policies like a $50,000 startup tax deduction and more venture capital, yet under the Biden-Harris administration, small businesses have struggled with inflation and rising costs.

In a presidential administration, Harris would likely promote economic policies focusing on “equity” — targeting racial and ethnic minorities and women — rather than universal economic growth. Her "Opportunity Agenda for Black Men," which she recently released, offers up to $20,000 in forgivable loans for black entrepreneurs.

While Harris has sympathized with voters over the high cost of living, during her time as vice president, she pushed through the nearly $2 trillion American Rescue Plan. The 2021 bill has been considered a major catalyst for current inflation.

Misrepresented in the media

The media downplays Trump’s strong appeal to the working class, and labor unions in particular. Union workers, many of whom have traditionally supported Democrats, are increasingly aligning with Trump because of his commitment to using tariffs to protect American jobs.

Trump often invokes former President William McKinley for using tariffs in the 1890s, pointing to their success in making the US “probably the wealthiest it ever was.”

This shift has led some of the country’s largest unions to hold back from endorsing Harris, despite their past support for Democratic presidential candidates. While the media continues to frame the GOP as the party of the wealthy, in reality, the GOP has become the new party of the working class while Democrats’ constituency has increasingly been well-to-do white voters.

The media often misrepresents Trump as disconnected from working-class voters while portraying Democrats as their champions. In reality, Democrats have increasingly catered to elites, as seen in events like Joe Biden charging up to $500,000 for tickets to a New York City with Bill Clinton, Barack Obama, and a selection of celebrities.

Why it matters

The US economy stands at a critical juncture, with Trump and Harris offering starkly different approaches. Trump's tariffs aim to bring jobs back to America, revitalize manufacturing, and protect national security, even if some argue they increase prices for consumers.

Harris focuses on equity-driven policies and government programs, which could fail to ensure economic growth, as many government programs have. Ultimately, this election will determine whether the US pursues a vision of self-sufficiency under Trump or a more government-led approach under Harris.