This article from Brookings details how US tariff policy has evolved, from specific products and sectors to broad-ranging policy used for industrial self-sufficiency. While initial usage of tariffs hinged on violations of existing trade deals, protection of key domestic sectors, and clear legal processes, tariffs in the 2nd Trump administration has evolved into leverage used for geoeconomic strategy even if haphazard.
This article also highlights how something many in this sub haven’t grasped yet – tariffs are not going away, and have in fact been incorporated into the US toolbox for industrial policy. That has been the trendline ever since the 1st Trump administration. Whether this can continue to work depends on the response of US trading partners but so far the system is mildly durable considering how it has worked without retaliation from most countries/unions.
This is why I think even if the Democratic party is elected in 2028, existing tariffs are likely to remain and new ones may even be added and these tariffs will likely only be negated through concessions or alignment with American geoeconomic strategy. Both the Trump and Biden administration have been pushing in this direction for a decade now, and given the increasingly salient threat from Chinese industry this will likely continue, even if it means extracting concessions from allies.
1 Comment
This article from Brookings details how US tariff policy has evolved, from specific products and sectors to broad-ranging policy used for industrial self-sufficiency. While initial usage of tariffs hinged on violations of existing trade deals, protection of key domestic sectors, and clear legal processes, tariffs in the 2nd Trump administration has evolved into leverage used for geoeconomic strategy even if haphazard.
This article also highlights how something many in this sub haven’t grasped yet – tariffs are not going away, and have in fact been incorporated into the US toolbox for industrial policy. That has been the trendline ever since the 1st Trump administration. Whether this can continue to work depends on the response of US trading partners but so far the system is mildly durable considering how it has worked without retaliation from most countries/unions.
This is why I think even if the Democratic party is elected in 2028, existing tariffs are likely to remain and new ones may even be added and these tariffs will likely only be negated through concessions or alignment with American geoeconomic strategy. Both the Trump and Biden administration have been pushing in this direction for a decade now, and given the increasingly salient threat from Chinese industry this will likely continue, even if it means extracting concessions from allies.