
President-elect Joe Biden will inherit US trade policy under Donald Trump, characterized by tariffs on global imports, such as steel and aluminum from most countries, wine and cheese from Europe. and nearly three-quarters of products originating in China.
Although Biden has not detailed plans yet, aides and advisers said he intends to reconsider those taxes. And like Trump, Biden can act without congressional backing.
Some of Biden’s election proposals may be difficult to execute if the Republicans still control the Senate. But not with trade policy. Because, the president has great power to conduct negotiations and remove or impose new taxes when it deems appropriate.
"It’s one of the few policy areas that Mr. Biden can work unilaterally," said Scott Lincicome, senior fellow at the Cato Institute and longtime commercial attorney, "For a number of policies. His character may not work, the President needs to show progress in other areas such as commerce or immigration.
Mr. Biden has called for unity under pressure from competitors, especially China. Poll shows that both Democratic and Republican voters have a view that increasingly makes China at a disadvantage.
In addition, Trump’s tenure also shows that many Republicans are no longer advocates of free trade and may seek to prevent Biden from pursuing policies seen as globalization.
During his term, Trump imposed a series of taxes on China to pressure, forcing Beijing to sign a phase one trade agreement earlier this year. Still, tariffs are maintained on about $ 370 billion worth of goods imported from the country, in order to force Beijing to comply with the terms, including increasing purchases of the US.
This tax is paid by American companies that import clothing, electronics, furniture, tools and other products from China, and it is passed down to consumers. With a few exceptions, US business groups oppose using taxes to press China to stop subsidizing certain industries.
"Our view is that we need a constructive and pragmatic relationship with China. But we can still do more than one thing at the same time. That’s why we also support staying strong. The pressure on harmful and unfair trade practices, "said Myron Brilliant, vice president and head of international affairs at the US Chamber of Commerce.
Biden’s advisers criticized the Trump administration for its lone approach towards China, saying that the US should cooperate with other countries in this. So, Biden once said that, instead of going against traditional economic allies, he would seek to cooperate with them to form an economic bloc against China.
Biden has described his international priority as rebuilding relationships with US allies , as many countries are angry at the tariffs imposed by Trump. Biden could begin to rebuild those relationships by negotiating an end to some taxes.
"I think he needs to look and review them," commented Richard Trumka, President of AFL-CIO, a union representing 12.5 million workers. According to him, taxation is also a way to combat trade violations, but this is being abused and ineffective.
Other moves the Biden administration could pursue would include resolving a protracted dispute with the European Union over subsidies to Boeing and Airbus, which resulted in the two sides imposing mutual tariffs.
The United States has imposed tariffs on Europe’s $ 7.5 billion, which includes a 25% tax on products such as wine, cheese, olives and spirits, as well as a 15% tax on aircraft. On 9/11, the EU announced it would continue to impose tariffs on about $ 4 billion of Boeing aircraft and other US goods.
Biden could also negotiate to restart WTO operations , which are having trouble with the Trump administration blocking the appointment of judges here. The US also makes it difficult to choose a new WTO director-general when it opposes a Nigerian candidate, despite the support of member states. WTO has said it will indefinitely postpone the selection of new leaders, meaning this issue may be resolved by the Biden administration.
Another major set of taxes that the Biden administration will inherit is 25% on steel and 10% on imported aluminum, which still apply to most trading partners, including traditional economic allies such as the EU. and Japan, as well as major steel exporters China and Russia.
Meanwhile, a policy likely to remain under Biden is "Buy America". In August, Mr. Trump issued an ordinance, requiring government agencies to buy essential drugs and medical supplies from domestic manufacturers, due to concerns about over-reliance on the source. Foreigners in the Covid-19 crisis.
The policy now requires the US Trade Representative’s office to renegotiate the terms of existing trade agreements with multiple countries and the WTO in the coming months. It affects hundreds of drugs and medical devices, including the main ingredients of aspirin and chemotherapy drugs. Instead of withdrawing Trump’s decision, Biden could go ahead and order trade negotiators to seek to revise existing agreements.
Along with that, during the campaign, Biden pledged to make a "historic procurement investment" worth 400 billion USD to promote the government to buy US-made goods and reduce dependence on imports. This is part of an effort to boost domestic production and support workers in industrialized states.