Part 3/8:
Historically, different administrations have pursued contrasting approaches to tariffs. The Trump administration was notably pro-tariff, yet failed to use the resulting revenue for constructive purposes, which inadvertently stifled economic activity. On the other hand, President Biden’s method leaned towards identifying specific subsectors for focused technological protection. While these strategies show some merit, both lack a robust industrial policy, hampering any long-term success.
The absence of a coherent industrial policy in the US since the 1940s complicates the situation further. Currently, there are no significant leaders who have a feasible memory of such policies, leading to skepticism about the ability to implement effective strategies in the immediate years ahead.