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Biden ‘inclined to’ lift some of Trump’s tariffs on China

President Biden is considering an increase in some Trump-era Chinese tariffs, in a move to tackle red-hot inflation that risks angering the labor movement and making it look weak on China.

Desperate to demonstrate measures to cut inflation by 8.6 percent, Biden and his top officials are considering scrapping some of the tariffs of up to 25 percent that now cover $350 million worth of imported goods from China.

Biden is expected to exempt some products covered by Trump’s SDection 301 tariffs on consumer items like bicycles, but he is likely to leave the tax on trade items like steel and aluminum, White House sources said. Axios.

The report comes after National Security Adviser Jake Sullivan held a 4.5-hour meeting with his Chinese counterpart Yang Jiechi in which he reportedly raised concerns about China’s “aggression” towards China. Taiwan.

Both Treasury Sec. Janet Yellen and Commerce Sec. Gina Raimondo confirmed last week that Biden could reconfigure Trump-era tariffs.

While the White House has asserted that it is largely up to the Federal Reserve and Congress to take action to address inflation, removing some tariffs is one of the few tangible executive actions Biden can take in the short term.

National Security Advisor Jake Sullivan

China's top diplomat Yang Jiechi

National Security Adviser Jake Sullivan met with China’s top diplomat Yang Jiechi in Luxembourg on Monday for four and a half hours, expressing concern over what one official said were “aggressive actions” by Beijing towards Taiwan.

Tensions have risen over the past year as China has stepped up its rhetoric about Taiwan and increased military flights around the self-governing island.

Tensions have risen over the past year as China has stepped up its rhetoric about Taiwan and increased military flights around the self-governing island.

A potential announcement is expected as soon as this month. A White House spokesman emphasized: “No decision has been made.”

“The president is discussing with his team how to ensure the tariffs are aligned with our economic and strategic priorities, such as safeguarding the interests of workers and critical industries, promoting our national security, and not unnecessarily raising costs for Americans.”

“I think some of the tariffs … really ended up being paid by the Americans, not the Chinese, hurting American consumers and businesses,” Yellen said at a House Ways and Means Committee hearing Wednesday. .

Yellen is among the voices within the Biden administration who want to lower the tariffs, putting her at odds with US Trade Representative Katherine Tai, who wants to leave them in place until the Biden administration has a broader strategy to protect American jobs and combat China’s unfair trade practices.

Tai insisted on Monday that inflation is “a more complicated issue than tariffs at the border.”

Yellen stressed that lowering tariffs is not a panacea for the inflation problem.

“I want to make it clear that I honestly don’t think tariff policy is a panacea with respect to inflation,” Yellen stressed. “Goods represent only a third of consumption and it is not clear exactly what the incidence and pass-through” of tariff cuts to consumers would be.

According to A studyremoving the tariffs could eventually lead to a reduction of about 1 percent in inflation.

And as the Biden administration mulls tariff reductions, the unions last week filed an official comment with the US Trade Representative urging Biden to keep them in place.

“Our government must act in the national interest to strengthen our economy for the future,” said the letter, signed by Thomas Conway, who chairs the Labor Advisory Committee for Trade Negotiations and Trade Policy, according to Axios.

Biden often flaunts his relationship with unions and would hesitate to cross them.

Retailers, meanwhile, have urged Biden to do the opposite and lift tariffs to curb red-hot inflation.

Last month, the National Retail Federation called on Biden to lift the tariffs in a letter, claiming that doing so could lower retail prices by 1.3 percent.

Last week, Biden halted tariffs on Chinese-made solar panels, a move widely applauded by Democrats as a green energy initiative and divided by conservatives.

Rep. Peter Meijer, R-Michigan, told DailyMail.com that Biden should have lifted solar panel fees sooner.

“For a guy who has been saying that we need to get additional renewables and then you have a 26 percent tariff on the front end… that Biden continued to defend the tariff, he is very much at odds with everything else he was saying. ‘

The president will declare a 24-month tariff exemption after an investigation froze imports from key foreign suppliers and halted projects (Pictured: panels in California)

The president will declare a 24-month tariff exemption after an investigation froze imports from key foreign suppliers and halted projects (Pictured: panels in California)

Meijer said it was “ironic” that Biden had left so many Trump-era tariffs in place.

“I always thought it was a bit ironic how he has kept, I think, every fee. With those that were intended for short-term tactical trading purposes, I think it’s important to step back and evaluate. Have they been effective? Have they stimulated the domestic manufacturing that they intended to do or have they simply raised costs?’

Senator Lindsey Graham said he thought the Chinese tariffs should be kept in place. “I think the tariffs imposed on China basically level the playing field because they cheat.”

“One of the reasons Mexico decided to keep illegal immigrants in Mexico until their asylum court date is that Trump threatened to impose tariffs on products coming out of Mexico and that really worked because of what he did with China.” Graham said during a debate. with Senator Bernie Sanders at the Kennedy Institute on Monday.

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