Democrats won Congress. Now they must win back trade policy
Taking back tariff power won’t be enough.
Democrats secured control of Congress, but now face the challenge of reclaiming oversight of trade policy. While some advocate for limiting the broad tariffs imposed by the current administration, others hope a future Democratic president can use tariffs for progressive goals like raising labor standards. However, this debate overlooks two key points.
Firstly, it places blame on the Trump administration for trade failures, overlooking how both Trump and Biden pursued similar policies that ultimately failed workers. Secondly, it neglects Congress's role in defining trade objectives. As a trade policy advocate, I urge Democratic leaders to learn from the shortcomings of both administrations and advocate for a different approach.
The past administrations, both Republican and Democratic, have undermined trade policy by relying on unilateral tariff measures, which have harmed both American workers and international partners. It's clear that Congress once held significant control over trade policy through Trade Promotion Authority (TPA), which linked up-or-down votes on trade agreements to labor and environmental standards in those deals.
Both Trump and Biden disregarded this authority. Under Trump, tariffs were used for one trade agreement, while under Biden, they were abandoned altogether. Both approaches alienated partners and raised consumer prices. The result? Countries turned to China, and allies signed trade deals without the U.S. Unilateral measures, even under Biden's worker-centered trade policy, have proven ineffective.
Tariffs not only antagonize trade partners but also fail to improve labor rights or deliver tangible benefits for American workers. In fact, wage growth for manufacturing workers has been modest at best, barely outpacing inflation. To truly make trade work for American workers, Congress must take a more deliberate approach. This means requiring transparent and participatory consultations at home and abroad, as well as insisting on amendments to international agreements that ensure labor standards are met.
Congress should mandate approval for new tariffs and re-establish Trade Promotion Authority centered on stakeholder participation both domestically and internationally. While President Trump is likely to veto such measures, his opposition should serve as a reminder that he favors unchecked trade power over agreements that could benefit U.S. companies and workers.
By passing these reforms in January, the new Democratic majority can lay the groundwork for a more effective and equitable trade policy that serves the interests of American workers and allies alike.
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