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Opinion | America is back? It’s more like a return to ‘America first’, as Biden takes a leaf from Trump’s protectionist playbook
- Despite promising to be an antidote to Trump in 2020, Biden has been clinging to his predecessor’s policies, with protectionist laws like the Inflation Reduction Act
- Granted, Biden is being squeezed by economic crises and the prospect of a 2024 Trump return, but his claim that ‘America is back’ should be more than a slogan
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US President Joe Biden’s primary appeal during the 2020 election cycle was not being Donald Trump. However, Biden has adopted various policies from his predecessor, albeit wrapped in friendly, promising rhetoric. The coming midterm elections are playing a pivotal role, but nonetheless, multiple decisions during Biden’s presidency have harked back to Trump’s “America first”, rather than “America is back”.
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It’s only been a month since Biden managed to push the Inflation Reduction Act (IRA) through Congress, a billion-dollar bill of laws aimed at saving America’s ailing economy, according to the president.
When looked at closely, however, it becomes apparent that the act is a de facto continuation of Trumpian protectionism and nationalism.
The legislation provides, among other things, nearly US$370 billion to promote green technology in an effort to mitigate climate change, including a US$7,500 tax credit on purchases of specific electric vehicles and a variable tax credit for battery cells.
However, consumers only receive a tax credit if the cars are manufactured in the US, Canada or Mexico. This means that 70 per cent of models on the US market are ineligible, the Alliance for Automotive Innovation estimates.
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By 2023, at least half of the battery components for these electric vehicles must also have been manufactured or assembled in North America. By 2028, the components have to be 100 per cent American.
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