Political party competition and varieties of US economic nationalism: trade wars, industrial policy and EU-US relations

Abstract

ABSTRACT This article identifies two distinct varieties of economic nationalism in the United States that have strong and lasting implications for transatlantic trade relations and traces their origins to how the two major parties use narratives to form competitive coalitions including trade critics since 2020. The Republican Party links trade critics with culture war supporters, allowing them to enhance their collective impact on domestic and foreign policy, including confrontation with Europe on trade. Democrats’ pursuit of trade critics in 2020 and beyond means a focus on domestic development and industrial policy appealing to centrist and progressive voters, and eschewing trade agreements. This developmental economic nationalism offers room for allied interdependence across the Atlantic.