Will Harris Support ‘Made in America’?

Will Harris Support ‘Made in America’?

President Biden has been a harsh critic of former president Donald Trump. Despite their differences, Biden has primarily continued the trade and industrial policies set during the Trump administration. 

Biden has maintained Trump’s “China tariffs” and added strong Buy America requirements to his signature legislation, the Inflation Reduction Act. This is wise policy and good politics since voters hold an overwhelmingly negative view of China. However, these tariff and tax incentives also help create good jobs nationwide. So the question is — would Kamala Harris continue Biden’s policies?

As a senator, Harris voted against a renegotiated NAFTA (known as “USMCA”) because it contained “insufficient” environmental provisions. She also opposed the Trans-Pacific Partnership because it didn’t “raise environmental standards.” Other than that, there’s little in her record to determine her views on global trade.

U.S.-China relations will be a critical issue in the next administration. The United States has already lost 3.8 million jobs to China since 2000. And Beijing continues illegally trans-shipping exports to avoid U.S. tariffs. Beijing is also meddling in U.S. elections and conducting espionage against America’s public officials — including two New York governors. Clearly, Beijing is pursuing a win-at-all-costs strategy.

China isn’t the only country looking to game the global trading system. Mexico is dumping steel in the U.S. market, violating a 2019 agreement. It is also welcoming scores of new Chinese factories just south of the U.S. border — helping Chinese firms evade U.S. tariffs.

These are among the many critical issues affecting American workers that the next president must confront. For example, the USMCA is due to be revisited in 2026. However, America’s trade deficit with Mexico keeps climbing yearly. With China eagerly exploiting the USMCA to build Mexican factories, the trade deal must be strengthened to protect America’s manufacturers.

There’s also global competition for solar panels, electric vehicles and batteries. In May, the administration raised the tariff on Chinese EVs to 100 percent. The president explained that this will “protect American manufacturers from China’s unfair trade practices.”

The administration has also increased tariffs on steel, aluminum, semiconductors, EV batteries and solar cells. Some consider this to be strong medicine. There’s now bipartisan support for it in Congress — particularly regarding advanced industries such as solar panels.

Unfortunately, the administration halted tariffs on imported solar panels in 2022 — even though Chinese solar manufacturers illegally route solar panels through Cambodia, Malaysia, Thailand and Vietnam. As a result, China is flooding the U.S. solar market — and putting America’s solar manufacturers at risk.

The solar case is a prime example of what Treasury Secretary Janet Yellen sees as Chinese overproduction that “distorts global prices and production patterns and hurts American firms and workers.” In response, Yellen thinkstariffs on Chinese goods are needed and won’t raise consumer prices meaningfully. 

National Economic Council Director Lael Brainard agrees, saying tariffs are necessary to avoid a “China Shock 2.0.”

A Coalition for a Prosperous America study found that recent tariffs have strengthened the U.S. economy and “led to significant reshoring in certain industries.” Similarly, a U.S. International Trade Commission report noted that tariffs have reduced imports from China and effectively stimulated U.S. production without affecting consumer prices.

What does all of this mean for Harris? America’s domestic manufacturers and workers certainly hope she agrees with Biden and Yellen — that tariffs are needed. However, she’ll likely face opposition from Wall Street.

However, Harris would be wise to ignore Wall Street’s calls for more offshoring. The vice president has repeatedly called for an “opportunity economy” — something best supported by a robust domestic manufacturing sector that creates high-paying jobs and new technologies.

To craft a pro-America trade and economic agenda, Harris should pledge to increase overall tariffs, use tax credits more broadly to grow critical production, and ignore Wall Street’s call to return to the failed trade policies of the past.

MADE IN AMERICA.

CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.

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