Challenges with Trade Policy: A Look at Newsom’s Comments
Governor Gavin Newsom of California, a Democratic presidential contender for 2028, left many viewers puzzled during his recent appearance on Fox Business. When asked by host Larry Kudlow about his approach to addressing the trade imbalances faced by the U.S., Newsom sidestepped a straightforward answer.
He has made headlines lately, particularly for discussing topics like the parole of President Biden’s son and expressing concerns over the presence of transgender women in women’s sports, labeling it as “deeply unfair.” However, during this interview, his response regarding foreign tariffs and export barriers felt more like a collection of buzzwords than a solid plan.
Newsom stated, “Identifying the problem is one thing. It’s a good approach to stepping up solutions and strategies in a consistent and comprehensive way.” But rather than tackling specific trade issues, he seemed to lean toward defending the Biden administration’s industrial policies.
He mentioned, “I argue that the Biden administration has made significant progress. I’ll discuss worker-centric industrial policy, the Chips and Science Act, and the IRA, which I find appealing to the public.” This response, however, lacked clarity, and he went on to suggest that the administration should “double down” on current initiatives.
“I want to double the chips and scientific law,” he added, touching on tariffs that could be useful but admitting their complexities. “It’s challenging. The message can vary significantly, which complicates investment.” His emphasis on targeted tariffs raised questions about how effectively they could be implemented.
Notably, the Chips and Science Act—signed by Biden in August 2022 to boost U.S. semiconductor production and lessen dependence on foreign sources—has faced scrutiny. Over $50 billion in grants and incentives were allocated for domestic chip manufacturing, but several projects have seen delays. For instance, Intel’s $28 billion facility in Ohio, initially expected to open in 2025, has now been pushed back to around 2030 due to various logistical and labor hurdles.
A report from the Peterson Institute for International Economics highlighted that the average taxpayer cost per job created under this act is around $185,000 a year, nearly doubling the average semiconductor industry salary, prompting doubts about its cost-effectiveness.
In March, during another discussion on “Real Time with Bill Maher,” Newsom criticized the Democratic brand as becoming “toxic” and called for a reevaluation of how his party communicates with voters. Despite significant funding aimed at tackling homelessness, he continues to attribute the ongoing housing crisis to strict regulations rather than his administration’s shortcomings.
