Joe Biden’s Trade War
One of the left’s major criticisms of United States President Donald Trump is that he launched a trade war on U.S. allies.
“Trump’s New Tariffs Are Causing America’s Closest Friends to View Him as a Hostile Threat,” blared the New Yorker. A New York Times opinion piece explained “How to Stop Trump’s Trade War Madness.” Pete Buttigieg coauthored a piece at Foreign Policy that explained, “Four years of neglect, unilateralism, and failed diplomacy have left America’s alliances in tatters. It’s time to rebuild them.”
Rebuilding those alliances was a key plank of Joe Biden’s election campaign. Yet the Biden administration is on the brink of starting a new trade war with Europe, bigger than anything Donald Trump ever did.
It stems from the Inflation Reduction Act—signed into law in August and rolling out over the next few years. The law provides for $370 billion in subsidies for green technologies—but only if those technologies are made in the U.S.
For example, electric vehicle manufacturers can receive up to $7,500 in tax credits. But it’s only available for cars made in North America, and certain critical components must be made in North America as well. This threatens a double-whammy to European producers. Not only will their American rivals have a $7,500 leg-up when competing for American sales, but the American firms will also have a strong incentive to avoid buying European parts.
The law also offers significant tax credits for companies producing batteries, wind turbines and solar panels in the U.S.
To Europe’s environmentalist leaders, this is a much bigger deal than Trump’s trade spat, which involved steel, blue jeans and Kentucky bourbon. To them, green tech is the future.
Politico reported that European Union leaders in Brussels saw the law as a “slap in the face.” French President Emmanuel Macron complained that it was “super aggressive for our companies” and risked “fragmenting the West.” The Wall Street Journal wrote an article titled “Biden Starts a Climate Trade War.”
“Wasn’t President Biden going to end Donald Trump’s destructive trade wars against allies?” they asked. “Apparently not.” Instead, Biden “is infuriating U.S. friends and may set off a subsidy and tariff war.”
The more business-focused Wall Street Journal may cover the story, but Joe Biden’s trade war hasn’t received anywhere near the coverage Donald Trump’s did. Maybe the U.S. media wasn’t really concerned with U.S.-European ties and just wanted another excuse to bash Trump.
The fact that this war is coming from the left is having a big impact in Europe. Now it’s clear, it’s not just Donald Trump, or even the Republicans in general that are a threat. Trade war is on the cards, no matter who is in the White House.
It’s yet another factor pushing the EU together. German Vice Chancellor Robert Habeck complained that it takes America two months to put something in place, and it takes the EU two years to come up with a response.
He’s right, and even if the EU does agree to have a similar “buy European” clause, how does it do it? There is no federal EU government to hand out subsidies. But some politicians think there should be. The fallout could be the final creation of a Europe-wide federal taxation and spending, a Rubicon moment for the formation of a European state.
But the more immediate change will likely come from the EU gearing up to fight a trade war itself. Thus far, the EU has been a champion of free trade—largely because it’s very good at quietly tilting the scales in its favor. Germany shares a currency with struggling southern European economies like Italy and Greece. This makes the euro much weaker than a deutsche mark would have been right now—making Germany’s exports artificially cheaper. It’s the same way China cheats on trade—but sneakier.
Now we’re seeing a change in policy.
“Under pressure from France, Brussels slowly started building up its arsenal of trade defense weapons to fight back against unfair practices from both China and the then U.S. President Donald Trump,” wrote Politico. “Now, the EU is thinking about picking up its big guns and joining in a protectionist battle involving state subsidies”—referring to the Inflation Reduction Act.
Here at the Trumpet we watch this closely because a trade war between Europe and Germany is prophesied.
The Bible prophesies of a trade alliance between Europe and China. Isaiah 23 forecasts a “mart of nations” (verse 3). The chapter is full of references to ships, oceans and overseas trade. This trade alliance includes Tyre, an ancient economic power and a type of the economic power rising in Europe. It also includes China, using its ancient name, Chittim. (Request our free booklet Isaiah’s End-Time Vision for biblical proof.)
Other scriptures forecast a trade war on the U.S. In Deuteronomy 28:52, God tells Israel that its enemies would “besiege thee in all thy gates”—cut its economy off from the outside world—the most extreme form of a trade war. Ezekiel 4 and 5 describe a siege of Jerusalem along with the other tribes of Israel. This siege, as outlined in chapter 4, did not happen during Ezekiel’s time. In fact, most of ancient Israel had already been conquered, deported and enslaved by the time Ezekiel wrote this.
Why give these prophecies? Because they are for the modern descendants of Israel, including America and Britain. (Request your free copy of The United States and Britain in Prophecy to trace this history.)
Put these scriptures together, and it’s clear that this mart of nations uses trade to oppose Britain and America. These nations cut America off completely, besieging it and bringing it down.
Events of today are the very early stages of this trade war. The Inflation Reduction Act targets Europe and China most of all. And these powers are already drawing closer together. Watch as this prophecy unfolds before your eyes.
If you want to learn more about it, read our article “Spiraling Into Trade War.”