Several experts have weighed in on the question of who benefits from the tariffs imposed by the United States on imports from China. While the issue is complex and multifaceted, there are various perspectives on the matter.
The ongoing trade war between the United States and China escalated this week with President Joe Biden announcing tariff hikes on various Chinese imports worth $18 billion. These tariffs are expected to have a minimal impact on the US economy but could boost Biden's political standing, especially as he gears up for reelection.
The tariffs primarily target imports such as lithium-ion batteries, steel, aluminum products, medical gloves, and syringes. While experts suggest that the economic impact of these tariffs will be insignificant, they acknowledge that such measures can carry political weight, particularly during an election year.
President Biden, like his predecessor Donald Trump, aims to project strength through tough trade policies, hoping to appeal to voters by demonstrating a firm stance against China. Despite the economic costs associated with tariffs, they often resonate positively with voters, as seen in previous elections.
Biden's decision to triple tariffs on Chinese steel, announced during a recent visit to Pennsylvania, a key battleground state known for its steel production, underscores his efforts to protect domestic industries and appeal to Rust Belt voters.
Additionally, Biden's move to safeguard the American auto industry, particularly against competition from China's electric vehicle sector, could further bolster his support, especially in states like Michigan, where the auto industry holds significant sway.
While China has promised retaliation for the latest round of tariffs, experts believe that any response is likely to be symbolic rather than disruptive, given the targeted nature of the US tariffs.
Overall, while these tariffs may not significantly impact the US-China trade relationship, they could play a crucial role in shaping domestic politics, particularly as the US heads towards a presidential election later in the year.
