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George Skinner's avatar

It shouldn't escape anybody's notice that the Biden administration didn't repeal Trump's 1st term tariffs on steel and aluminum. Trump's trade policies embrace a lot of the same protectionist nonsense that Democrats have historically championed. It would be a mistake to assume that a future Democratic administration would fully reverse Trump's policies and return to a pre-Trump status quo, irrespective of the fact that free trade has been better for the US economy.

Future US administrations and congresses might also be reluctant to repeal tariffs because they need the revenue. Yes, tariffs are a tax paid by Americans, but raising taxes on anybody but "the rich" (conveniently defined as something about 10% more than senior journalists or bureaucrats make) is politically toxic. Meanwhile, the US federal government is a fiscal trainwreck, with deficits running close to 6% of GDP and looming insolvency of entitlement programs like Social Security. They need more revenue. Getting Americans to accept the broad-based tax hikes needed to reduce the gap while also swallowing cuts to services and entitlements is so politically fraught that tariffs might be the best alternative, no matter how inefficient and deleterious in other ways.

Howie Vickberg's avatar

Good piece... the simple fact is the world gets the u.s., the u.s. doesn't get the world!

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