WASHINGTON – The Biden administration is fastidiously finding out the inflationary affect of tariffs imposed on China by former President Donald Trump’s administration given a surge in shopper costs, White House press secretary Jen Psaki stated on Monday.
Ms. Psaki stated she had no information on tariff reductions since U.S. Commerce Consultant Katherine Tai remains to be reviewing Trump-era tariffs on Chinese items. However she made clear that increased inflation was an element within the deliberations.
“This is an ongoing process, and we’re certainly looking at where we see costs being raised and, at a time where we’re seeing heightened inflation, certainly that’s on our minds,” Ms. Psaki stated.
She stated the review was additionally taking a look at bigger points, resembling China’s conduct in international markets and the affect of tariffs on wages, job alternatives and America’s aggressive edge.
The White House feedback got here days after U.S. Treasury Secretary Janet Yellen stated it was “worth considering” taking steps to decrease U.S. tariffs on Chinese items given the “desirable effects” such a transfer may have on reducing U.S. inflation, which has hit 40-year highs this yr. Read full story
Deputy nationwide safety adviser Daleep Singh advised a separate occasion on Thursday that easing tariffs on non-strategic Chinese items resembling bicycles or attire may assist fight inflation. Read full story
Mr. Biden’s approval rankings have fallen as the prices of power, meals and different staples have risen, with mounting public frustration threatening to value Democrats their slim majorities in Congress in midterm elections in November.
Chad Bown, a senior fellow on the Peterson Institute for Worldwide Economics, stated Psaki’s feedback compounded expectations that the Biden administration was contemplating tariff reductions.
Mr. Bown stated that will possible require behind-the-scenes negotiations with Beijing. Such a transfer would additionally possible trigger tensions with a Biden administration push to maneuver provide chains from China and nearer to dwelling.
No remark was instantly accessible from Ms. Tai’s workplace. – Reuters