The ongoing trade war between the United States and China escalated this week with the latest move, adding to the tension in the race for the White House.
President Joe Biden announced on Tuesday an increase in tariffs on various Chinese imports, totaling $18 billion.
The majority of this amount, $13 billion, is attributed to lithium-ion batteries, with the remaining $5 billion covering specific steel and aluminum products, medical gloves, and syringes.
While experts predict minimal impact on consumer prices and economic growth from these tariffs, the political implications for Biden’s reelection campaign are significant.
According to Bernard Yaros, the lead US economist at Oxford Economics, the economic effects of these tariffs are marginal and will not have a substantial impact.
Despite the limited economic impact, implementing these tariffs is seen as a strategic political move, especially during an election year, Yaros noted.
Demonstrating Strength
With the upcoming presidential election in November, Biden is gearing up to face his predecessor, former President Donald Trump, in a closely contested race.
Trump has always projected a tough image, particularly in foreign policy and the economy, contrasting his Democratic opponent as “weak.” Biden, on the other hand, is countering this narrative by adopting policies that align with some of Trump’s strategies.
Research from the National Bureau of Economic Research in January suggests that tariffs can yield political benefits, even if they do not result in significant job creation.
During the period of 2018 to 2019, when Trump imposed hefty tariffs on China and other nations, the study revealed that residents in regions heavily impacted by import tariffs shifted towards identifying as Republicans rather than Democrats.
The findings of the report highlight the complex interplay between trade policies and political outcomes.
Post from www.aljazeera.com