Higher Inflation Factors in Chinese Product Tariff Review – White House

By Andrea Shalal

WASHINGTON (Reuters) – The Biden administration is carefully considering the inflationary impact of tariffs imposed on China by former President Donald Trump’s administration in light of soaring consumer prices, the press secretary said on Monday. of the White House, Jen Psaki.

PSAki said she has no news on tariff cuts since U.S. Trade Representative Katherine Tai is still reviewing Trump-era tariffs on Chinese goods. But she said rising inflation was a factor in the deliberations.

“It’s an ongoing process, and we’re certainly looking at where we see costs rising, and at a time when we see increased inflation, that’s certainly what we think,” Psaki said.

She said the review also looked at broader issues, such as China’s behavior in global markets and the impact of tariffs on America’s wages, job opportunities and competitive advantage. .

The White House comments came days after US Treasury Secretary Janet Yellen said it was worth considering taking steps to lower US tariffs on Chinese goods given the “effects desirable” that such a decision could have on the reduction of US inflation, which has reached 40 years. peaks this year.

Deputy National Security Adviser Daleep Singh said at a separate event on Thursday that easing tariffs on non-strategic Chinese goods such as bicycles or clothing could help fight inflation.

Biden’s approval ratings have plummeted as costs for energy, food and other basics have risen, with growing public frustration threatening to cost Democrats their narrow congressional majorities in the election mid-term in November.

Chad Bown, a senior fellow at the Peterson Institute for International Economics, said Psaki’s comments heightened expectations that the Biden administration was considering tariff cuts.

Bown said that would likely require behind-the-scenes negotiations with Beijing. Such a move would also likely cause tension with pressure from the Biden administration to move supply chains from China and closer to home.

No comment was immediately available from Tai’s office.

(Reporting by Andrea Shalal; Editing by Cynthia Osterman)

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