To fight high inflation, US PresidentBidenOn the 10th, it was issued, and it was evaluating the reduction of additional duties on products imported from mainland China.tarifftax rate. Although conditions within the Biden administration are still divided, observers say the Biden administration is well aware that if inflation remains high, in Novembermid term electionwill be punished by voters, so the key to determining this policy will be midterm election results.
Biden blamed high inflation on pandemic containment measures and worsening supply chain constraints caused by the Russian invasion of Ukraine, and said he was working with the Federal Reserve (Fed) to curb high inflation. Asked by reporters whether duty rates on Chinese imports would be reduced, he said: “We are discussing it and we will evaluate the measures that will have the most positive impact.”
The Biden administration currently places most tariffs on $300 billion in land-based goods, but as inflation continues to rise, US Congressmen, business circles and economists have called for lower tariffs on land-based goods, as This is the Biden administration. One of the few tools that can fight inflation. With US 25% tariffs on $50 billion worth of land goods ending in July, the Biden administration has begun to assess whether to continue implementing the tariffs and has asked for comments from the industry.
However, there are still differences within the Biden administration. The camp, headed by Treasury Secretary Yellen and Commerce Minister Raimondo, supports a reduction in tariffs, while the camp, headed by US Trade Representative Dai Qi, is concerned if it is sharply reduced or canceled by the United States in cargo tariff negotiations and Bargaining from mainland China will reduce chips, so it is advocated that long-term policy goals should not be sacrificed for the short-term benefits of reducing inflation.
Another point of contention is how much tariffs need to be reduced to reduce inflation. Estimates of the correlation effect by external economists have varied widely. Research released in March by researchers such as Clyde of the Peterson Institute for International Economics (PIIE) showed that lifting tariffs and related impacts on China could reduce the risk to the U.S. by 2017. Inflation will increase. The rate hike was reduced by 1.3 percentage points, but research by Ruth and others at the same agency showed that an increase in tariffs on land goods affected the U.S. The annual rate of inflation has been increased by 0.26 percentage points.
However, inflation has become a political issue for the Biden administration. Republicans are cutting down on the Democratic Party’s pandemic relief measures and infrastructure spending plans, which are criminals that put upward pressure on inflation. A Reuters/Ipsos poll this week found that only 42 percent of American adults acknowledge Biden’s performance and view the economy as the most important issue. The CNN/SSRS survey also showed that 81 percent of respondents thought the government was doing little to tackle inflation, a 9-point increase from December last year.
It also means the Democratic Party will face an uphill battle to defend majority seats in the Senate and House of Representatives in midterm elections in half a year. So, for the Biden administration, whether or not to reduce tariffs on Chinese goods is not solely an economic decision, but also a political decision.
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