U.S. President Biden warned on Tuesday that Republican Trump’s plans to reshape global trade by extending tax cuts and imposing tariffs could have negative impacts on the U.S. economy.
At an event hosted by the Brookings Institution on the same day, Biden defended his economic policies, saying they had helped Americans recover from the shock of the COVID-19 pandemic. However, voters clearly did not agree, and the Democratic Party suffered a significant defeat in last month’s elections.
Biden noted that most economists believe the new administration will inherit a fairly strong economy, at least for now. “I deeply hope the new government can maintain and make more progress on this foundation,” he said.
Trump has promised major reforms to economic policies, which is a major reason for his return to the White House. The Democratic Party’s defeat suggests voters are dissatisfied with the economy under Biden’s leadership.
He insisted that his policies had planted the seeds of economic growth that would support working-class and middle-class families.
He warned that if Trump implemented tax cuts for the wealthy, cut social welfare spending, withdrew infrastructure investments, and imposed new tariffs on trade partners, it could threaten the gains from economic growth. He also pointed out that if the United States abandoned its free trade policy, it could allow competitors to play a more significant role in shaping the global order.
“I think this approach is a grave mistake. If we don’t lead the world, who will?” Biden emphasized.
Economists also generally believe that the Republican commitment to high tariffs could reignite inflation, and further corporate tax cuts could widen the already high U.S. deficit.
He also criticized many of Trump’s policies from his first term, especially the tax cuts that Biden said mainly benefited the wealthy. He tried to contrast these criticisms with his policy stance and emphasized his efforts to expand health insurance coverage and promote the expansion of child tax credits.
Biden said of the COVID-19 pandemic, “Frankly, the previous administration did not have a real plan to help us through one of the toughest times in our nation’s history.”
It is worth noting that Tuesday’s speech had a farewell tone and was a summary of Biden’s achievements during his tenure. Biden claimed to have created 16 million new jobs, reduced the unemployment rate to historic lows, and seen the stock market hit new highs.
Biden acknowledged that inflation had caused public dissatisfaction but was now “falling faster than almost anywhere else in the world.”
He also expressed frustration that his achievements had not been recognized as they should have been. “I’ve also learned something from Trump: he sent out checks with his signature, but I didn’t,” Biden said.
