In order to battle the United States’ record-high inflation, President Joe Biden’s administration is considering lowering tariffs on Chinese imports.
On Sunday, Commerce Secretary Gina Raimondo confirmed the possible move, adding that Biden has personally requested her team to investigate the matter. Inflation in the United States reached a 40-year high in March, and it is anticipated to rise further in the months ahead.
Biden admin may relax China tariffs in bid to ease inflation, commerce secretary sayshttps://t.co/aAj7v96vKC
— Fox News (@FoxNews) June 5, 2022
Some of the tariffs imposed by former President Donald Trump harm household goods that may be obtained from China at a lower price. Some of Trump’s tariffs on China have previously been praised by Raimondo as “very effective.”
When asked if the Biden administration was considering easing tariffs on China to reduce inflation, Raimondo said to CNN in an interview on Sunday, “We are looking at it. In fact, the president has asked us on his team to analyze that. And so we are in the process of doing that for him and he will have to make that decision.”
The proposed action comes as the Biden White House scrambles for ways to combat inflation. Last week, Biden unveiled a three-point proposal to curb inflation, but even members of his own party panned it.
Rep. Ro Khanna, D-Calif., wrote on Thursday, “I support the president’s efforts, but we need a bolder vision and faster action.”
“To meet the moment, Mr. Biden should convene an emergency task force empowered to lower prices and address shortages. We need an all-out mobilization, not just a few ad hoc initiatives reacting to headlines,” he added.
— The Hill (@thehill) June 2, 2022
However, Biden’s proposal mostly relies on the Federal Reserve and Congress to deal with inflation, with minimal administrative action on his part.
Last year, the Biden administration argued that inflation would be “transitory.” Last Monday, Treasury Secretary Janet Yellen conceded that her prognosis was “wrong.”
She told CNN at the time, “I think I was wrong about the path that inflation would take.”