• 18 Posts
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Joined 1 year ago
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Cake day: June 16th, 2023

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  • The US is decoupling from the global trading system even under Biden. Biden maintained Trump’s block of the WTO appellate judge system (apparently because the WTO had the temerity to rule against the US in a couple of trade cases). He kept the Trump tariffs against China, and he’s had fairly tense trading relations with allies like Japan, South Korea, and Europe, in an effort to court union support. He has strongarmed/blackmailed Taiwan into helping setting up chip production in the US, a distinctly Trumpy move.

    So while Trump might add a layer of unpredictability, the general direction of US trade policy is the same no matter who wins the election.

















  • Here’s the story as I understand it. US automakers want to make expensive premium cars because those sell for high margins. The big breakthrough in the EV market over the past few years has been China EV makers figuring out how to make cheap and “good-enough” EVs, which are catching on in many places across the world. This is clearly the direction in which the market has to move (whether via Chinese or non-Chinese automakers) to spur mass EV adoption. In the US, however, the established automakers can rely on protectionism to block imports, this keeping the US market limited to big expensive cars that remain using ICEs.


  • These complaints about EVs being too expensive are way out of date, now that China is pumping out hordes of cheap EVs that consumers like.

    Even if the US doesn’t want to let in Chinese auto imports, the question remains: why are Chinese automakers able to bring down prices, but not US automakers? You can point to Chinese government subsidies, but the US also does industrial policy these days. One of Biden’s favourite talking points is how much money his government is putting into supporting US green manufacturing through the IRA.