JOHN RAPLEY
The US is no longer buying Chinese electric vehicles and China is no longer buying US Treasury bonds. Is this the start of the great decoupling we keep hearing about, with the two superpowers squaring off into rival camps? As China draws closer to Russia and Iran, the US is “friend-shoring” its overseas economic linkages with global allies.
Perhaps not — it is an election year, after all. President Joe Biden’s announcement of tariffs on Chinese EV imports, which came just a couple of weeks after he imposed tariffs on Chinese steel, has been made with one eye on union votes. After Donald Trump won the support of so many white working-class voters in 2016, Biden pledged to rebuild ties between them and his party. With Trump calling for steep tariffs on Chinese goods, Biden had to take preemptive action if he’s to remain competitive in industrial swing states such as Pennsylvania come November.
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