PROSPERITY PUB MARKET TALK
Biden & Trump Finally Agree On Something
For the first time in a long time, there’s something President Biden and former President Trump agree on: the need to tackle the growing influence of China.
During their terms, both leaders have taken steps to protect American industries from Chinese competition, but their approaches differ in execution and intensity.
Let’s rewind a bit: For decades Americans have enjoyed low prices on many products, from electronics to clothing, thanks to cheap Chinese imports.
That might seem like a good thing, but the influx of cheap goods has come at a cost: the decline of American manufacturing and the loss of over a million jobs.
In an attempt to reverse the trend, both Biden and Trump have implemented tariffs on Chinese imports, aiming to revive American industries and protect jobs.
Trump’s approach was aggressive, imposing sweeping tariffs on Chinese goods and threatening to cut off trade altogether. He argued that higher consumer prices were a small price to pay for increased manufacturing employment and economic security.
On the other hand, Biden has taken a more targeted approach, focusing on strategic industries like clean energy and semiconductors. His administration has not only maintained Trump’s tariffs but also introduced new ones, including a 100% tax on Chinese electric vehicles.
But despite the differences in their methods, both presidents recognize the need to separate the U.S. economy from China. Biden’s current strategy includes massive subsidies for domestic tech manufacturing and strict restrictions on Chinese access to critical technologies — something that Trump, too, pushed for.
The big question remains: will these efforts be enough?
As Chinese companies have made significant strides in becoming an economic powerhouse, Americans over the decades have gotten hooked on a supply of seemingly endless cheap goods.
And while China has been perfecting their approach to EVs and tech manufacturing, U.S. automakers like Tesla, Rivian, and Fisker are grappling with production delays, financial hurdles, and fluctuating demand.
It seems the American public is caught in the middle: On one hand, who doesn’t want to see a resurgence of domestic manufacturing? On the other, the public has to be concerned about turning off the tap of cheap goods.
As the election looms and both candidates hurl insults back and forth, one thing is for sure: their stance on China seems to be the one place they can both agree.
— The Prosperity Pub Team
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