President Joe Biden announced that his administration will raise tariffs on Chinese goods, targeting sectors from electric vehicles to solar energy. Yahoo Finance's Rick Newman joins Market Domination to discuss the tariffs and how they compare to Donald Trump's agenda on China.
Newman points out that Biden's announcement came as "the whole political world in the United States now is tough on China."
The move is much more targeted than his predecessor's. Donald Trump placed tariffs on about half of all Chinese imports during his tenure, Newman says. Biden is instead interested in targeting specific sectors to align with his overall policy goals, like building out the semiconductor supply chain within the United States.
Newman adds that "we're now in a oneupmanship situation between Trump and Biden," saying that the two may try to keep upping the ante on China tariffs. During his term, Trump tariffed $300 billion in Chinese goods, while Biden is set to tariff $18 billion.
However, Newman warns of the problem of "China shock," in which millions of jobs went overseas after China joined the World Trade Organization, weakening key sectors. He explains it is "the number one reason why Trump got elected in 2016 because he appealed to those people. He called it American carnage. When he said 'make America great again,' what he meant, or what those people heard, was bring those jobs back."
Trump's policies did not bring those jobs back to the United States, Newman says, highlighting that the heavy tariffs resulted in retaliation that hurt domestic jobs, especially in the agriculture industry.
"I think Trump does have a knack for putting his finger on something that is wrong," Newman says, but notes that the former president's "prescription was wrong."
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