In an effort to reduce the country’s skyrocketing rates of inflation—numbers not seen in the nation for decades—President Biden is prepared to lower tariffs on select Chinese imports.
Biden might make a choice this week and announce it.
The former president Donald Trump originally slapped tariffs on Chinese goods, claiming that China deserved to be punished for its unfair trade practices. The Biden administration is now concluding a required assessment of those penalties.
Before the government makes a final decision, American companies and labor organizations that have supported keeping the tariffs in place have until Tuesday to respond.
Because of differences over policy among his own senior advisers and Cabinet secretaries, the outlet said that Biden has repeatedly delayed measures to reduce tariffs.
Since they believe that tariffs are ineffective at stopping what they perceive to be unfair trade practices by Beijing, Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo are allegedly in favor of lowering them.
Others in the administration, such as national security advisor Jake Sullivan and US Trade Representative Katherine Tai, prefer keeping the tariffs in place as a means of exerting pressure on China.
Only until China responds to American allegations that unfair trade practices damage US businesses do Sullivan and Tai want to lift tariffs.
In order to bring down the price of consumer products, which has increased significantly over the past year owing to record-high inflation, Biden is hoping that tariffs will be lifted.
Due to the surging price of oil as well as the growing costs of food, rent, and healthcare, the consumer price index continued to rise in May at an alarming rate of 8.6 percent, which is the highest level since 1981.
The annual growth rate of 8.6 percent is better than the analysts’ prediction of 8.3 percent and surpasses the 8.3 percent recorded in April, when it fell from 8.5 percent in March.
According to statistics from the Commerce Department issued on Thursday, the Personal Consumption Expenditures price index, the Fed’s favored measure of inflation, increased by 6.3 percent in May.
The result revealed that although inflation is showing signs of leveling off following a months-long spike, it still poses a persistent danger to the economy.
