Market Data 
No matter who wins the presidential election in November, American businesses can expect to pay more to import certain foreign-made goods.
Former President Donald Trump, who has referred to himself as a “Tariff Man,” has called for increasing tariffs on all imports.
Meanwhile, President Joe Biden – who has kept most of Trump’s tariffs in place for the past three-plus years – said Tuesday that his administration will increase tariffs on some Chinese-produced goods, including electric vehicles, semiconductors and steel.
The two presidential candidates are usually far apart on the issues, but a protectionist trade policy is where they find common ground. Tariffs can be politically popular, even though many economists agree they are costly tools that don’t always boost domestic industries as promised.
Still, there are major differences to note between Trump’s call for sweeping tariffs and Biden’s more targeted approach. Here’s what voters should know:
Starting in 2018, Trump imposed new tariffs of up to 25% on foreign-made washing machines, solar panels, steel and aluminum, as well as many Chinese-made goods, including baseball hats, luggage, bicycles, TVs and sneakers.
If he returns to the White House, Trump plans to add to those tariffs by enacting a duty of at least 10% on all imports from all countries, a tariff upward of 60% on all Chinese imports and a 100% tariff on all cars made outside the US. It’s unclear what legal authority the former president would use to implement such widespread tariffs if he wins November’s election.
Several economic studies have shown that Trump’s tariffs failed to boost US manufacturing and ultimately cost more jobs than they created.
Plus, American importers have borne nearly the full cost of Trump’s tariffs, according to a 2023 study from the US International Trade Commission.
Americans have paid nearly $236 billion to date for tariffs that Trump imposed on imported solar panels, steel and aluminum and Chinese-made goods, according to US Customs and Border Protection. More than half of the duties have been collected during the Biden administration.
When it came to China, Trump used tariffs as a negotiating tactic, meant to hurt its economy and pressure Beijing to agree to a new deal that addresses unfair trade practices, such as intellectual property theft and forced technology transfers. Business leaders across the US, as well as lawmakers on both sides of the aisle, tend to agree that China’s trade policies need to be addressed.
While Trump did get Chinese President Xi Jinping to the negotiating table, some of the commitments China made in an agreement reached in January 2020 never came to fruition.
Under what’s known as the Phase One agreement, China agreed to increase its purchases of US goods and agricultural products – setting a target of buying $200 billion more than it did before the trade war began. But China fell well short of that pledge.
A Phase Two agreement was never reached between the US and China under either the Trump or Biden administrations.
Unlike Trump’s pledge to implement widespread tariffs, the duties Biden announced Tuesday are focused only on China.
As a long-delayed review of Trump’s tariffs on Chinese-made goods comes to an end, the Biden administration has decided to increase some of those existing tariffs. Duty rates will rise on Chinese-produced steel, aluminum, semiconductors, electric vehicles, batteries, solar cells, cranes and some medical products such as syringes and needles.
Those increased tariffs are in line with Biden’s other economic policies aimed at boosting domestic manufacturing in industries including clean energy and semiconductor chips.
Steel and aluminum trade groups and unions welcomed the news after Biden first said in April he was considering a tariff hike on steel during a speech at the United Steelworkers headquarters in Pittsburgh. But some analysts say the move could have little impact on the US steel industry because China accounts for a very small percentage of US steel imports.
Biden has faced some political pressure to ramp up protections to fight China’s unfair trade policies. A recent letter from seven Democratic senators from potential swing states including Michigan, Wisconsin, Ohio and Pennsylvania urged Biden to maintain or increase the tariffs that Trump imposed on Chinese goods.
“Maintaining the scope and impact of these tariffs benefits American workers, manufacturers, and their communities, and holds China accountable for the country’s continued anti-competitive practices,” the senators wrote.
