From a rhetorical perspective, the State of the Union speech by the President of the United States was well-delivered, engaging and had an overall sense of optimism. It seemed the president was on a mission to reassure Americans at home that he is indeed fighting for them, whether against far right Republicans who want to decrease social security spending or against corporations trying to manipulate consumers through “junk fees.” He is there to ensure that neither happens. It was also refreshing to hear the President’s emphasis on bipartisanship going forward, something that will certainly be hard to do in an increasingly polarized Congress.
Be that as it may, as an international student economist I could not help but wonder about the direction of the United States when it comes to international trade. The president highlighted his commitment to putting America first, a popular domestic narrative most often associated with former president Donald Trump. The Biden administration, has upheld tariffs imposed by the Trump administration on China, which, of course, violate the rules of the World Trade Organization. Will the commitment to put America first exacerbate trade wars with China and with allies like the European Union? It looks like the United States is choosing protectionism over free trade, despite prohibitions embedded international trade laws.
Finally, while the Inflation Reduction Act (IRA) benefits domestic corporations and may help the US government and economy in the transition to greener sources of energy, European companies may be at a disadvantage as they seek to compete against heavily subsidized green US products.