As the United States gears up for the November 5 presidential election, the economic stakes are high—especially when it comes to managing trade relations with China, the world’s second-largest economy. How each candidate plans to handle this complex relationship could have major implications for global markets, American consumers, and the long-term standing of the U.S. as the leading global economy.
Kamala Harris: Strategic Competition, Diplomatic Pressure
Vice President Kamala Harris, running as the Democratic nominee, has generally aligned with President Joe Biden’s approach of “strategic competition” with China. Her plan focuses on:
Targeted Tariffs: Harris supports maintaining some of the existing tariffs on Chinese goods—especially those linked to national security or unfair trade practices—but aims to recalibrate them to avoid widespread inflation.
Allied Coordination: She advocates working with allies in Europe and Asia to form a united front against China's economic coercion and human rights abuses.
Supply Chain Resilience: Harris emphasizes investing in domestic manufacturing and reducing U.S. reliance on Chinese critical goods, particularly in tech and energy sectors.
Climate Cooperation: While competitive, Harris supports limited cooperation with China on global issues like climate change, seeing mutual benefit in certain areas.
Economic Impact: Harris’ approach may reduce economic volatility compared to more aggressive trade wars, but some tariffs would remain. Her plan hinges on long-term investments in innovation, manufacturing, and clean energy.
Donald Trump: Confrontation and Economic Nationalism
Former President Donald Trump is doubling down on his America First agenda, vowing a much tougher stance on China:
Universal Tariffs: Trump has proposed a blanket 10% tariff on all imports, with even higher rates for Chinese goods. Some reports suggest tariffs could go as high as 60% for China specifically.
Decoupling: Trump supports further economic “decoupling” from China, encouraging U.S. companies to bring manufacturing back home or relocate to “friendly” countries.
Currency and Tech Controls: He also plans stricter controls on Chinese investment and technology partnerships, citing national security.
Repatriation Incentives: Trump would offer incentives to businesses that bring jobs and production back to the U.S., including tax cuts and deregulation.
Economic Impact: Trump’s tariff-heavy strategy could cause short-term price increases for American consumers and spark retaliation from China, but he argues it’s necessary for long-term leverage and economic independence.
The Bigger Picture
Both candidates promise to confront China’s economic practices, but their styles differ sharply: Harris leans on diplomacy and selective pressure, while Trump pushes for aggressive, across-the-board tariffs and economic decoupling.
The next president’s China strategy will not only shape bilateral relations but also influence inflation, supply chain stability, and America’s leadership in trade and innovation for years to come.
