He is also expected to exit the Paris Climate Agreement, expand fossil fuel production (where the United States is already the leading oil and gas producer and exporter), and cut electric vehicle subsidies, while championing nuclear power. On external economic policy, Trump proposed imposing new tariffs globally at a 10% or 20% level, as well as at 60% for all imports from China. He can also be expected to further push on the European Union, whose $200 billion trade surplus with the United States is second only to China and indeed worse than during his first term. Unfortunately, the failure to resolve many old trade issues during Biden’s term (steel and aluminum, Boeing-Airbus and agriculture) means these wounds will be quickly re-opened, even as problems from Biden’s own policies (tax rebates only for EVs largely made in America and other procurement preferences) continue to fester. And new irritants are sure to come, especially through enforcement of the EU’s Digital Services Act and Digital Markets Act, a possible ECJ ruling against the new US-EU Data Privacy Framework, and the likely escalation of the trade war with China.
