America is back? It’s more like a return to ‘America first’, as Biden takes a leaf from Trump’s protectionist playbook
- Despite promising to be an antidote to Trump in 2020, Biden has been clinging to his predecessor’s policies, with protectionist laws like the Inflation Reduction Act
- Granted, Biden is being squeezed by economic crises and the prospect of a 2024 Trump return, but his claim that ‘America is back’ should be more than a slogan
When looked at closely, however, it becomes apparent that the act is a de facto continuation of Trumpian protectionism and nationalism.
However, consumers only receive a tax credit if the cars are manufactured in the US, Canada or Mexico. This means that 70 per cent of models on the US market are ineligible, the Alliance for Automotive Innovation estimates.
By 2023, at least half of the battery components for these electric vehicles must also have been manufactured or assembled in North America. By 2028, the components have to be 100 per cent American.
For example, in 2021, the Biden administration announced it would maintain Trump’s 15,000 cap on refugee admissions. Only after a backlash from within his own party and human rights groups did Biden reverse course. Meanwhile, Biden only ended the Trump-era “stay in Mexico” policy last month.
With that said, there are various deviations from Trump’s motivations – especially when it comes to US membership in international organisations and agreements, decorum, or upholding the rule of law or the oath of office in general. Nonetheless, it’s fair to say that the Biden administration is further along the “America first” path than most would have anticipated.
However, the Inflation Reduction Act has broader implications that have caused disagreements on the other side of the Atlantic. In fact, in Brussels, the EU is currently assessing whether the act might violate World Trade Organization (WTO) rules.
EU Trade Commissioner Valdis Dombrovskis recently told Bloomberg that the European Union had “concerns about a number of discriminatory elements in this Inflation Reduction Act which puts requirement for local content, for local production”.
Support for Brussels has come from South Korea, which is affected because Kia is one of the car manufacturers losing funding. It has already said it is seeking to pursue a lawsuit against the US at the WTO.
South Korean Minister of Trade, Industry and Energy Lee Chang-yang said, “it is highly likely to be violating those rules, and we will bring a complaint at the WTO if necessary”.
Even if Democrats win US midterm elections, divisive politics is here to stay
However, Biden has a responsibility – particularly after announcing that “America is back” – to rectify the damage done by Trump, who single-handedly shattered international norms and led the US back into a period of semi-isolation during his tenure.
Biden’s set of guiding principles should have ensured he said goodbye to “America first” policies, and quickly moved to a new era of reconciliation and cooperation with allies and old friends. Indeed, we should have seen more than just a headline to say the person in the Oval Office was no longer Trump.
Yet, with Biden walking a tightrope, those outside North America remain the weakest link. In many ways, that’s just like it was under Trump – albeit without the preposterous tweets.
Thomas O. Falk is an independent journalist and political analyst