Opinion | Too bad US’ trade war with China is driven by narrow political interests

In May, the Biden administration announced plans to raise tariffs on Chinese products including semiconductors, solar cells and electric vehicles. This came after US President Joe Biden spoke to the United Steelworkers members at their Pittsburgh headquarters in April, saying he would “consider tripling the tariff rates for both steel imports and aluminium imports from China”.

Should he be re-elected in November, former US president Donald Trump has pledged to enact a 10 per cent across-the-board tariff on imports that he claims will raise billions of dollars in revenue to pay for more tax cuts.

While tariffs might benefit the targeted industry and workers, they often penalise other domestic industries, distort the world economy, lead to inflation and increase costs for consumers. Given the preponderance of the evidence, why do leaders from both parties promote tariffs and protectionism? The reason is domestic politics.

Biden is trying to find ways to build up his appeal to voters. Many of those voters have been hurt by inflation and are unable to pay all their monthly bills, according to recent US Federal Reserve data. Meanwhile, US support for Israel’s war against Hamas in Gaza is alienating some young voters.

Proclaiming himself “the most pro-union president in American history”, Biden wants voters – especially those in battleground states such as Michigan, Wisconsin and Pennsylvania, the core of the American auto industry – to believe that raising tariffs on Chinese products will bring manufacturing jobs back to the United States.