Keeping an eye on potential measures to reverse the skyrocketing inflation in America, US President Joe Biden on Tuesday stated that his administration is currently reviewing the tariffs on imports from China that were imposed by ex-US President Donald Trump. Speaking at a presser, Biden informed that Washington is “looking at what would have the most positive impact,” adding that no final decision has been drawn yet. “We are discussing it right now,” he responded when asked if the US will drop the tariffs slapped by Trump.
“I am telling you we are discussing it and no decision has been made on it,” Biden reiterated when pressed about whether or not Washington will ease or remove the tariffs on Chinese imports.
White House Press Secretary Jen Psaki later on Tuesday also confirmed that “a review” of US tariffs on China by the Biden administration is underway. “He is being new ones, yes, because it is an ongoing process and there are more that are still in place,” Psaki said. The US is continuing to evaluate where it would be “advantageous” to take steps that would help to “increase wages and bolster certain industries that are impacted by the tariffs in a way that we don’t feel is effective,” she went on, as quoted by CNN. Meanwhile, business and economic experts have advised the Biden administration to drop the Trump-era tariffs stating that it is “a way” to counter inflation.
Biden eased some tariffs on Chinese imports in March
In March, Biden relaxed some Trump-imposed import tariffs on Chinese goods but he left tariffs in place on $350 billion of Chinese goods. In retaliation, Beijing too slapped tariffs on US-produced agricultural imports. In January, Biden stated that he was leaving the tariffs in place as China failed to meet the targets promised against the 2020 truce signed between Chinese President Xi Jinping and Donald Trump, under which Beijing was supposed to increase US goods purchases in return for no new tariff on imports. However, Beijing only reached half the goal by increasing American imports by 57% by the end of 2021.
The import duties on Chinese goods make it more expensive for American businesses to purchase the items that are not made in the US but have a high demand. Thus, reducing or eliminating tariffs on such products will effectively contribute to reducing inflationary prices, business experts said, as quoted by CNN. It is pertinent to mention that the US is facing 40-years-high inflation in the wake of pandemic-related supply-chain bottlenecks and the ongoing Russia-Ukraine war.