Trump's second year in the US presidency has brought both challenges and controversy. While it's too early to determine if he will be a successful president, there is no doubt that he has become one of the most polarizing figures in American history. During his first term, with the backing of the Supreme Court and Republican majorities in Congress, Trump pushed through several key policies despite widespread criticism. These included a travel ban targeting predominantly Muslim countries, withdrawal from the Paris Climate Agreement, and tax cuts that fulfilled some of his campaign promises.
One of the most significant actions taken at the start of his second term was the use of Section 201 of the Trade Act of 1974, which allows the US International Trade Commission (ITC) to investigate whether imported goods are causing serious injury to domestic industries. This provision had not been used in over 16 years. Last week, Trump announced a 50% tariff on imported washing machines and a 30% tariff on solar panels, marking a clear shift toward trade protectionism.
Section 201 differs from the more commonly known Section 301, which targets specific countries for unfair trade practices. The last time Section 201 was used on a broad scale was under President George W. Bush in 2002. In the case of washing machines, Whirlpool, a major US manufacturer, filed complaints with the ITC, claiming that foreign imports were harming its business. Although the ITC found evidence of dumping by Samsung and LG, no tariffs were imposed until now.
This pattern of political rhetoric versus action is common in US politics. Candidates often promise strong trade protections during their campaigns, only to face pushback once in office. Obama, for instance, criticized NAFTA during his 2008 campaign and even threatened punitive measures against companies moving jobs overseas. Yet, during his eight years in office, he largely supported free trade and did not use Section 201.
The real beneficiaries of free trade tend to be the coastal states—home to tech giants, financial institutions, and entertainment companies. These regions form the Democratic Party’s core base. Meanwhile, the Republican base is concentrated in the Midwest and South, where manufacturing, energy, and agriculture are vital. Trump’s use of Section 201 aligns with his campaign promises and reflects a broader strategy to appeal to these traditional industries.
The Great Lakes region, often referred to as the "Rust Belt," has played a critical role in recent elections. Trump’s victory in 2016 was largely due to winning key swing states like Wisconsin, Michigan, and Pennsylvania—areas that had previously supported Obama. These regions have suffered from job losses and economic decline, making them fertile ground for Trump’s protectionist message.
Despite low approval ratings, Trump maintains strong support among his base, particularly in the Rust Belt. His trade policies aim to protect domestic manufacturers and create jobs, which is essential for maintaining his political coalition. The recent tariffs on washing machines and solar panels are just the beginning. Other sectors, such as steel, may also see similar measures in the coming months.
In response to the tariffs, companies like Samsung and LG have already begun shifting production to the US. This not only supports Trump’s "Make America Great Again" agenda but also helps secure votes in key swing states. As the mid-term elections approach, the Great Lakes region remains a focal point, with Republicans hoping to maintain control of Congress and advance their agenda.
Overall, Trump’s trade policies reflect a strategic move to consolidate power and win support from key voter groups. Whether these measures will lead to long-term economic benefits or provoke international backlash remains to be seen. For now, they serve a clear political purpose: to strengthen his base and ensure his re-election prospects.
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