From the trade war with China to tariffs against the European Union. From the management of online platforms to internal economy. How does America change with Joe Biden? How will the new president of the United States address the issues most closely linked to fashion and luxury? According to the authoritative analyst Erwan Rambourg it will change little. But a less impulsive political approach than Trump’s may already be good news for the markets.
How does America change?
So far, Biden hasn’t said much about his orientation in the trade war against China. Duties imposed on Beijing by Trump are, moreover, only one piece of a wider confrontation between the two nations, and according to Business of Fashion their elimination will not be so easy and immediate. Similarly, there is uncertainty on the other front, the European one. Even though Carlo Capasa, president of CNMI (Camera Nazionale della Moda Italiana), told MFFashion that “the impression is that he no longer uses duties as a cudgel, depending on the message of convenience for internal politics”.
Digital and work
Trump had initiated antitrust proceedings against Google, and was targeting Facebook, both accused of monopolising the market. How will Biden behave? We still don’t know, although two things are certain. The first: it will opt for greater incisiveness of environmental policies. The second: it will initiate a greater tax burden on companies. In other words, Biden plans to raise corporate tax rate from 21% to 28%. And not only that. He would like to raise the minimum employees wage.
Made in America
But, despite these two “sensitive” manoeuvres, Biden will support the made in America, albeit with less emphasis than his predecessor. The strengthening of domestic production would, in fact, significantly reduce the difficulties caused by Coronavirus. Biden said he wanted to boost domestic economy. This could improve the consumption trend, in particular by facilitating fashion and luxury purchases. But, for now, they are still (almost) all words.