Whether Donald Trump or Kamala Harris will lead the next US presidency, it will need to create numerous difficult choices to ensure long-term and robust economic growth.
The incoming Biden administration’s plan to overhaul the current restrictions program in ways that put economy before politics, for example.
American businesses are suffering from politically inspired sanctions that were intended to hurt foreign adversaries who are undoubtedly doing just as much, and in some cases, more harm to US business interests.
For instance, the US tariffs on aluminum and steel tripled as a result of the escalating conflict with China, which caused the country’s companies to suffer and source input from Chinese suppliers.
In terms of the economic harm US policymakers allegedly believed they would cause, disciplinary US sanctions against Russian firms have largely failed.
However, the actions frequently have caused American businesses to boom and also have greatly impacted the country’s economy, which also contributes to Washington’s continued use of the buck as yet another form of sanctions.
Two American firms ‘ cases — International Paper Company and Arconic Corporation—stand out as sobering stories.
After the US authorities imposed sanctions against American business activities that, International Paper Co, a leading US manufacturer of packaging materials and cellulose materials, had to stop operating and promote its ownership interest in Russia.
In change, International Paper Co completely closed its three firms in Orange, Texas, Riegelwood, North Carolina, and Pensacola, Florida at the end of next year.
The shutdowns reduced the company’s production by about 1.3 million tons ( 8.3 % ), and over 900 employees were laid off. According to media reports, the complete shutdown expenses amounted to some US$ 664 million.
Despite the fact that the package did not ultimately come through, the sanctions-caused turmoil led to acquisition discussions with Suzano, the largest Portuguese papers and pulp company in Latin America. Since then, there have n’t been any known reports of the company’s production recovery or potential merger.
Perhaps more intriguing is Arconic Corporation’s event. In November 2022, the firm was essentially forced to sell 100 % of its Russia-based firm, which commenced activities in 2007.
After the sanctions-forced divestiture, Arconic Corporation recorded a$ 304 million after-tax loss on the sale in the last quarter of 2022.
According to the Des Moines Register, the firm entered into an agreement and a consolidation program in May 2023 to been acquired by money managed by Apollo Global Management, Inc. members.
In Q1 2023, Arconic Corporation’s accounts payable were$ 1.5 billion and its net profit dropped by almost 40 % to$ 25 million from$ 42 million in 2022 quarter on quarter.
Davenport Works, Arconic Corporation’s key manufacturing center located in Iowa, had 2, 400 people in the fall of 2023.
The Quad Cities Metropolitan Area, which includes Rock Island and Moline in Illinois and Davenport and Bettendorf in Iowa, was finally included among the ten largest companies.
But, after the deal closed in August 2023, Arconic Corp’s stock stopped trading on the New York Stock Exchange. Since the company is then privately held, public opinion is not currently being offered on its production indicators.
These two are just two of the numerous large American firms that are enduring Washington’s increasingly harsh sanctions regime. Small and medium-sized enterprises furthermore face major challenges from US restrictions, which generally prove fatal to their operations.
If America’s following head opt to establish new politically motivated restrictions, American firms and their employees will feel the pain as much, if not more, than America’s enemies. And at a time when the US market as a whole is gaining ground.  ,
However, neither candidate seems possible to roll up sanctions and emphasize US business interests. Harris’s Democrats have championed the present storm of sanctions, meaning she’ll probably survive Biden’s policies.
Trump’s success, on the other hand, is likely to ratchet up the price war he started with China in his previous administration. He has pledged to impose tariffs on nations that help de-dollarization initiatives.
In any case, regardless of which party will win the Oval Office in November, it would be wise to evaluate and modify policies that prioritize political considerations and issues over British business interests.
That would n’t need to mean burying the hatchet and making friends with Russia’s Putin or China’s Xi. The next president will still have plenty of ways to impose sanctions on allies and change them in ways that benefit American businesses rather than harm them. It’s great time to do so.
Jason Rivers is a freelance blogger and former investment bank researcher with a focus on US politics, economy, and international relations.