The US may lift some taxes with China to fight inflation

On June 5, US Commerce Secretary Gina Raimondo said that President Joe Biden asked to consider lifting some of the tariffs that the previous administration imposed on China, to combat high inflation in the country.

“We’re deliberating. In fact, the President has asked us to analyze this. Everything is in progress and then he’s going to have to make a decision.” Raimondo told CNN, when asked if the Biden administration would consider lifting tariffs on China to reduce inflation.

“There are items such as household appliances, bicycles, … that can have a reasonable plan”, said Mrs. Raimondo. She added that the administration has decided to withhold tariffs on steel and aluminum to protect workers and the US steel industry.

According to President Biden, he is considering removing some of the tariffs from the US tariffs on hundreds of billions of dollars of Chinese goods. In 2018 and 2019, this tax was implemented by the former President Trump administration in the context of a fierce trade war between the world’s two largest economies.

China also believes that cutting tariffs will help reduce costs for US consumers.

Inflation in the US hit a 40-year high in March and is expected to escalate in the coming months. Some taxes imposed by former President Donald Trump are said to affect household items that can be bought cheaply from China.

The White House is aggressively seeking remedies. Mr. Biden launched a three-point plan last week, but some members of his party say the plans need “a bolder vision and faster action”.

US Treasury Secretary Janet Yellen earlier said she was wrong in her assessment of the severity of inflation. “As I mentioned, there have been major and unforeseen shocks to the economy that have driven up food and energy prices, and supply bottlenecks that have hit our economy hard. “.

Minister Raimondo also said that the ongoing shortage of semiconductor chips is likely to continue until 2024. “But there is a solution. Congress needs to act and pass the semiconductor bill. I don’t know why they delayed.”

The act aims to increase semiconductor production in the US so that the country has more competitive advantage over China.