Skip to content

Tariffs and Trade

Historical evidence and recent studies show that tariffs are taxes that raise prices and reduce available quantities of goods and services for U.S. businesses and consumers, which results in lower income, reduced employment, and lower economic output. For example, the effects of higher steel prices, largely a result of the 2002 Bush steel tariffs, led to a loss of nearly 200,000 jobs in the steel-consuming sector, a loss larger than the total employment in the steel-producing sector at the time. It’s also worth noting that measures of trade flows, such as the trade balance, are accounting identities and should not be misunderstood to be indicators of economic health.

The Biden administration should provide relief to U.S. industries and workers by lifting the Trump tariffs, as they have failed in their objective to bring better trading practices and instead brought about economic damage. Further, the Biden administration should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or sign bilateral trade agreements with other Asian-Pacific countries to continue to diversify U.S. supply chains, expand access to foreign markets, and promote U.S. economic growth. Learn more about Biden tariffs and trade proposals and explore our analysis of Trump trade war policies below.

 

Learn more with TaxEDU

All Related Articles

Trump Biden tariffs tango the Deduction podcast why are tariffs so popular

Trump and Biden’s Tariff Tango

Tariffs are a hot topic this election cycle for both President Biden and former President Trump. But why are tariffs so popular despite their economic downsides?

Germany trade tax rates

Trade Tax Rates in Germany

Varying local trade tax rates impact business investment and local government revenue across Germany’s municipalities.

4 min read
US Protectionism Trump & Biden Protectionist Trade Policies

Trump, Biden and the American Protectionist Matrix

Trump’s protectionist measures and the continuation of most of them under the Biden administration already form the matrix of American trade policy after the 2024 elections.

1 min read
Digital services taxes in Europe by country 2024 digital taxes in Europe otherwise known as DSTs in Europe

Digital Services Taxes in Europe, 2024

About half of all European OECD countries have either announced, proposed, or implemented a DST. Because these taxes mainly impact U.S. companies and are thus perceived as discriminatory, the United States responded to the policies with retaliatory tariff threats, urging countries to abandon unilateral measures.

4 min read

Taxocracy Tales with Scott Hodge

All taxes tell a story, and today we’ll explore how taxes influenced Bob Dylan’s decision to sell his music catalog, how the “chicken tax” reshaped the auto industry, and how the historic “tax on air and light” had profound effects on architecture and living conditions.

Americans Are Still Paying for the Biden-Trump Tariffs, See US Tariffs analysis

Americans Are Still Paying for the Trump-Biden Tariffs

If reelected, President Trump would drastically escalate the trade war he started during his first term. But what often goes unnoticed is President Biden’s role in continuing Trump’s first trade war. In fact, more tax revenue from the trade war tariffs has been collected under Biden than under Trump.

5 min read
Tax Foundation Discussion on the Harms of Retaliatory Tax and Trade Policies with Senator Blackburn

Tax Foundation Discussion on the Harms of Retaliatory Tax and Trade Policies

Historical evidence and recent studies have shown that retaliatory tax and trade proposals raise prices and reduce the quantity of goods and services available to U.S. businesses and consumers, resulting in lower incomes, reduced employment, and lower economic output.

5 min read
Is the Foreign Pollution Fee Act a Carbon Price?

Is the Foreign Pollution Fee Act a Carbon Price?

A national-level carbon price—a tax or cap-and-trade scheme placed on CO2 or other greenhouse gases—may seem distant in the U.S., especially since the Inflation Reduction Act, which included major climate policy, omitted one. However, policymakers on both sides of the aisle have been nibbling around the edges of carbon taxes.

5 min read
Pillar One US Treasury Consultation on OECD proposal for public review input and comments

Five Takeaways from the New Pillar One Documents

The OECD recently released a trove of new documents on a draft multilateral tax treaty. The U.S. Treasury has opened a 60-day consultation period for the proposal and is requesting public review and input.

7 min read
trade deficit and us trade and tax policy analysis

Debunking Myths about the Trade Deficit

Politicians often bemoan the trade deficit, but their disdain for this economic statistic is largely misplaced. The trade deficit reflects deeper choices about how we use our money, and reducing it may require lowering our standard of living.

4 min read
UN tax cooperation efforts Tax Foundation response on cross border trade and investment United Nations general assembly

Global Tax Tug of War: Comparing the UN and OECD Approaches

The United Nations (UN) is preparing to flex its muscles on international tax policy. Several developing countries say the OECD’s approach favors richer countries at their expense, and the UN hopes to fix this.

5 min read