Joe Biden News Today: "Biden also has protectionist traits"

Joe Biden News Today: "Biden also has protectionist traits"

 

US citizens have elected Joe Biden as the 46th President of the USA.

The US citizens have voted: Joe Biden is to become the new president in January. Does this mean a radical economic reorientation? Are punitive tariffs and trade wars a thing of the past? Marc S. Tenbieg, Executive Chairman of the German Association of Small and Medium-Sized Enterprises (DMB), counts on it, hopes - and admonishes. 

 

Marc S. Tenbieg: Basically, this is initially a positive signal for the German economy. With Biden, there are considerable hopes of strengthening the transatlantic partnership. Joe Biden News Today - It should bring more reliability and stability back into the White House - and that is important for investments. I assume that Biden will enter into dialogue with the European Union and also with Germany.

 

The US Congress could make it difficult for him...

 

Yes, the Democrats have a majority in the House of Representatives. The Senate is currently in Republican hands. The final decision will not be made until January, with the Senate election in Georgia, whether anything will change in these circumstances.

 

What can German medium-sized companies expect from US President Biden?

 

GERMAN ASSOCIATION OF SMES

The German Mittelstands-Bund (DMB) EV is the internal; group of minor and medium-sized stablemen’s in Germany. From1982, it has expressed the concerns of its 22,000 associate establishments beyond all commerce with a total of more than 500,000 employees. This renders the DMB one of the biggest self-reliant interest and business collaborators in Germany.

 

The USA is Germany's most important trading partner. According to the Federal Statistical Office, goods worth around 119 billion Euros were exported to the USA in 2019. The role of the US sales market for German medium-sized companies is correspondingly large. The German middle class is relying on a closer partnership with the USA.

 

Keyword closer partnership: Trump threatened punitive tariffs on German cars, also an important issue for the numerous medium-sized suppliers. Are the trade restrictions off the table with a US President Biden?

 

Joe BidenNews Today: That is a difficult question. In the past, punitive tariffs were an instrument that was rarely used with caution. Under Trump, they have become the rule and therefore socially acceptable. Biden is certainly a beacon of hope for the German economy. But Biden will also see how he can help the battered American market on its feet. In this situation, he could lose his fear of punitive or protective tariffs. You need to brace and witness what unfolds. Biden cannot be denied certain protectionist traits.

 

Could Biden even introduce new punitive tariffs?

 

Reitz on US economic policy

"It will be hard for Biden to do anything new"

I think that's unlikely. Sticking to existing tariffs, I think that's more likely.

 

Will trade relations between the US and China change? After all, these are the two largest economies in the world.

 

The relationship between the two global superpowers has been considered tense for a long time. That is why I do not assume that political and economic relations will change from now on. In the medium term, however, I expect a certain relaxation - due to a guided dialogue. The relationship between the US and China was badly battered during Trump's tenure. It takes a little time.

 

Trump has also unilaterally terminated the nuclear deal with Iran. Could it now come back to the negotiating table?

 

We hope, also for the German middle class, that the topic will be revived. As Vice President, Biden was part of the US administration of Barack Obama, at the time he was involved in negotiating the nuclear agreement under the leadership of John Kerry. This gives Biden a strong connection to the nuclear deal. This means that there is the possibility - in the long term - that the agreement will be revived and adapted.

 

In the short term, Biden has other topics on his agenda, such as the coronavirus pandemic. But he has also announced the return to the Paris Climate Agreement: That plays into the hands of German SMEs...

 

Germany and the EU have made it their mission to be leaders in climate protection. The fact that Joe Biden has announced that he wants to invest heavily in renewable energies benefits all companies, including German and German medium-sized companies. Biden wants to make the US climate neutral by 2050 and drive the transformation of the economy with two trillion dollars. Even if the Senate blocks it or cuts investment, there will be a huge amount of money invested in the US economy.

 

So German SMEs can only benefit from this?

German companies have a world market share in the field of environmental protection technology and resource efficiency of 14 percent. Biden News Today - If you simply offset the investments announced by Biden, you can see what a huge opportunity there is - also for medium-sized companies.

 

That doesn't necessarily sound like Trump's "America First”.

 

Experts expect a boost in the US economy after Biden Win

 

Trump was able to unite a little more than 70 million US voters. He has also achieved this with his protectionist trade and economic policy. This also increases the pressure on Biden to go in this direction. Besides, Joe Biden has always written on his flags: "Buy American". That means: strengthening the American domestic market and domestic production. This indicates that we will probably not be out of the misery of protectionism yet.

 

What remains of the Trump presidency in the end?

Under Trump, the US has become an unreliable partner in the world. You lost a lot of trusts. Besides, the political climate became brutal and the culture of the debate was completely lost. Trump courted protectionism and called the world community into question - and in the end, many states followed Trump and his negative example. Inhibitions have fallen. The times under Trump were very turbulent.

 

So things can only get better under Biden?

Something like that is said quickly. But I'm more sceptical about that. Biden has at least a lot of work ahead of him: politically, economically, and socially. In the end, however, there could be a more reliable trade policy and, ideally, a significant realignment of the US economy.