In a departure from long-held party principles, delegates to the Republican National Convention (“RNC”) this week approved a party platform calling for increased tariffs and trade restrictions in an effort “to protect American Workers, Farmers, and Industries from unfair Foreign Competition.” The platform sets forth a series of trade policies that, if implemented, would increase the cost of imports into the United States. These policy proposals include:
- Supporting baseline tariffs on foreign-made goods;
- Passing the Trump Reciprocal Trade Act, which would give the president the authority to impose tariffs on goods imported from specific countries at the same rate as the tariffs they impose on imports of U.S. goods;
- Revoking China’s Most Favored Nation status, which would increase import duties on goods from China;
- Phasing out imports of essential goods from China;
- Preventing imports of Chinese automobiles;
- Bringing supply chains critical to national security and economic stability back to the United States; and
- Prohibiting companies that outsource jobs overseas from doing business with the federal government.
The platform makes no specific reference to former President Trump’s various stated proposals of a 10 percent across-the-board tariff on all imports from all countries, at least a 60 percent tariff on all Chinese imports, and a 100 percent tariff on cars made by Chinese firms in Mexico.
The platform stands in sharp contrast to previous party platforms—spanning back to the Reagan and Eisenhower administrations—advocating for a more expansive approach to international trade. As recent as 2016, RNC delegates adopted a platform calling for broadening trade agreements with like-minded nations, stating that “international trade is crucial for all sectors of America’s economy.”
Although party platforms are not legislative proposals or binding commitments, they do offer insight into the trade policies that could be pursued in the event that Republicans win the presidency and Congress in the current election cycle. Notably, significant factions of the party and many lawmakers remain committed to promoting international trade.
As the election approaches, companies should consider the impact these policies may have on their business and prepare for the possibility of higher import costs.
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