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Purpose – For 75 years, U.S. administrations viewed free trade as a tool for leadership and growth. Trump, however, used it to tackle domestic issues and counter China. Despite criticizing Trump, Biden has continued his trade policies, combining them with an America First industrial approach. This paper explores the shift in U.S. trade policy and forecasts the future trade environment.
Design/Methodology/Approach – This paper is structured as follows. Chapter II examines U.S.-China trade and relations under the Kissinger framework; Chapter III discusses and evaluates the major trade policy shifts of the Trump administration; Chapter IV reviews and assesses the key trade policies of the Biden administration. Finally, Chapter V summarizes the findings and offers insights.
Findings – The debate over free trade vs. protectionism is intensifying as globalization impacts the U.S. economy. This paper argues that both parties now favor protectionism and government intervention. Trump aimed to reduce the trade deficit and confront China, while Biden prioritizes industrial policies to rebuild the middle class and counter China through alliances, seeing trade liberalization as outdated.
Research Implications – The Trump administration’s trade policy shifted focus, reassessing China and free trade, setting the stage for Biden’s "America First" approach. This policy, blending trade and industrial strategies, addresses globalization's downsides. As U.S. trade hardens against China, South Korea, with a significant trade deficit with the U.S., should prepare for potential challenges related to subsidies, tariffs, and regulations.
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