Liberal economists warned of the grave economic consequences that would befall America if President Trump followed through with a plan to hit Chinese-made products with billions of dollars worth of tariffs.
Well, he did and the economy benefited as a result.
Thanks to Trump, a manufacturing boom exploded across the U.S. after he levied giant sanctions against Communist China and the products they import. Recent investment data, and statements from leading business executives, paint a clearer picture as to how Trump helped America emerge from its manufacturing slump.
A recent data dump from Bloomberg essentially dispelled all myths that Trump’s China tariffs would somehow translate into high prices for U.S. consumers. The figures couldn’t come at a better time since Biden is days away from eliminating all Trump-era tariffs on China that spurred such a massive manufacturing uptick.
For some companies, the first nudge they got to revamp their supply-chain lines came two years before Covid, when then-President Donald Trump began slapping tariffs on Chinese products again and again.
Construction was completed on numerous manufacturing projects this year. The U.S. economy added 120% more facilities than under the Obama administration. Some projects include microchip plants, aluminum plants, and steel manufacturing facilities across many states in the southern U.S, all Republican-controlled.
Over 90% of executives polled in a recent business survey claimed they were planning or have already planned to move their manufacturing operations out of China, and 80% of them pledged to reshore in the U.S.
Former President Trump decried Biden’s potential decision to cut tariffs on China, calling the move a “terrible mistake.” While Biden doesn’t seem to mind paying favors to communist nations and multinational corporations, cutting Trump’s China tariffs would result in a windfall of cash for some of the world’s worst villains.
“These tariffs have brought many billions of dollars to our country, and made affected businesses, such as steel, viable again in the United States … taking these tariffs off would be a clear signal that the United States is weak, ineffective, and doing business as usual,” Trump said in a statement.
Even unions agree with the Former President and have urged the Biden administration to keep in place the Trump China tariffs that spurred massive economic growth in the years since they were levied. It’s still unknown whether Biden, who constantly announces his union background, will listen to his union backers.
The United Steelworkers (USW) union agrees with Trump and has urged Biden not to cut any U.S. tariffs on China.
According to the United Steelworkers Union, “Too many U.S. companies have failed to take needed actions to address the threat posed by Chinese Communist Party policies,” which Trump’s tariffs seemed to correct.
Meanwhile, the Biden administration is desperate to dig themselves out of a political hole. Soaring consumer prices for nearly all goods and services has rocked Biden and the Democrats’ approval ratings and the midterm elections will likely reflect voters’ concerns.
This is why Biden is considering eliminating Trump’s China tariffs in the first place. By doing so, the Biden administration argues prices of goods will drop for U.S. consumers, but the data says otherwise.
The latest research from the Economic Policy Institute (EPI) notes that there is no connection between U.S. tariffs and current inflation.
From 2001 to 2018, U.S. free trade with China eliminated 3.7 million American jobs from the economy — 2.8 million of which were lost in American manufacturing. During that same period, at least 50,000 American manufacturing plants closed down.
Free trade policies with China resulted in a massive trade deficit which coincided with U.S. manufacturers fleeing the country. A study from 2019 determined that a permanent tariff on China-made products at 25% would create more than a million U.S.-based jobs in five years.
For America to thrive, we must remain competitive with China in the manufacturing sphere. Without Trump’s tariffs against their imports, the communist nation will be free to rack up the trade deficit and undercut American workers, which would result in massive job loss.
Author: Elizabeth Tierney