The United States faced a trade deficit of $773 billion in 2023, with China as the primary trade partner. Over the years, the trade deficit has consistently increased, regardless of which political party was in power. However, these figures do not fully capture the evolving direction of the US economy. The country is now moving away from the complete adoption of globalization and towards a more intentional emphasis on localization.

Localization refers to an economic strategy that emphasizes producing goods and services closer to home, ideally within the country itself. This shift is evident in the economic strategies of both Kamala Harris and Donald Trump, through the implementation of tariffs and industrial policies. Despite the differing approaches of the two candidates, localization has become a bipartisan approach to economic nationalism, offering several benefits for the US economy.

The transition to localization is driven by a growing awareness of the vulnerabilities exposed by global interconnections during times of crisis, such as the COVID-19 pandemic and ongoing conflicts. Disruptions in international supply chains have underscored the risks of relying heavily on distant manufacturing centers. This has led to a renewed interest in bolstering local industries, revitalizing manufacturing, and enhancing infrastructure to build a more resilient US economy.

To illustrate, initiatives under President Biden’s administration, like the Inflation Reduction Act, prioritize investments in critical infrastructure, clean energy, and smart manufacturing. These initiatives aim to create jobs, reduce dependence on foreign goods, and reshore essential industries like semiconductors. The Act includes tax incentives and grants to encourage companies to invest in domestic production, create jobs, and boost wages, while addressing supply chain vulnerabilities by improving logistical infrastructure within the US.

The shift towards localization also addresses concerns about income inequality and the fair distribution of economic benefits. Globalization has contributed to rising income inequality in the US, with the growth of outsourced jobs and stagnant wages in key sectors. By enhancing domestic production capabilities and supporting small businesses, localization promotes more inclusive growth, benefiting communities across the nation.

Supporting small businesses, particularly in underserved areas, can help reduce regional economic disparities. Research indicates that investment in advanced manufacturing technologies could generate millions of jobs by 2030, with many of these jobs requiring high-skilled labor and offering above-average wages. Localization efforts also position the US as a leader in innovation and sustainable development, particularly in fields like clean energy and advanced manufacturing.

Looking ahead, a focus on localization can help the US economy become more resilient, innovative, and sustainable, benefiting a wider range of society. Both presidential candidates offer different approaches to achieve this goal, but the ultimate aim remains the same: to invest in local industries and technology for a stronger economic future.