Katherine Tai, the U.S. Trade Representative, has been in her role for nearly four years and believes that significant strides have been made in protecting labor rights. However, she recognizes that the true measure of these accomplishments will be determined by voters.
In a recent interview, Tai reaffirmed her dedication to promoting fair trade since taking office. “You can’t just set trade policies in a vacuum. I believe we are on the right path. The only question is how much progress we can achieve in the coming years,” she stated.
Despite her optimism, critics argue that she has not effectively addressed China’s growing influence. Republican Congresswoman Carol Miller from West Virginia noted, “We haven’t seen any trade agreements reached, nor any negotiations aimed at expanding free trade agreements.” She stressed that “the U.S. is falling behind compared to China’s ambitious plans.”
Former President Donald Trump has suggested imposing a tariff of at least 20% on all imported goods, with even steeper tariffs on specific items from China and Mexico, in an effort to create more job opportunities in American manufacturing.
Since taking office, President Biden has made shifts in trade policies, including a 100% tariff on Chinese electric vehicles. Without these tariffs, a vehicle priced at $12,000 would face considerable financial repercussions. The Biden administration is also responding to competition from China through targeted industrial policy, such as offering subsidies for semiconductor production and tax incentives for renewable energy technology.
However, economists warn that high tariffs have resulted in job losses in manufacturing and a downturn for small businesses, leading to a workforce transition from manufacturing to the service sector. Mary Lovely, a senior fellow at the Peterson Institute for International Economics, commented, “Tai seems focused on one straightforward issue: placing the blame on China as the ‘bad guy.’”
In collaboration with Asian allies, the White House has been promoting the Indo-Pacific Economic Framework, initially designed to counter China’s influence but now shifting its focus toward labor rights and environmental concerns. Tai explained, “We are essentially crafting a new trade policy to create a future developmental model for globalization.”
Tai pointed out that the U.S.-Mexico-Canada Agreement (USMCA) includes specific mechanisms to hold companies accountable for labor rights violations. By the end of September, 28 investigations had been initiated, with 25 completed, positively affecting 30,000 Mexican workers. “By establishing labor rights mechanisms in Mexico, we ensure that American workers are not forced to compete with exploited labor from neighboring countries,” Tai said.
While Trump celebrates the USMCA as one of the major achievements of his presidency, Tai insists that trade protections and rights must extend beyond mere agreements: “Unless these agreements are actively implemented, they are just words.”