Biden: Lifting tariffs on China's imports 'under consideration'
2 Min Read
The US inflation has pushed US President Joe Biden to consider removing trade tariffs on Chinese imports.
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US President Joe Biden is looking for solutions for US inflation.
Today, Monday, US President Joe Biden revealed that the issue of removing the Trump-era trade tariffs imposed on Chinese imports is currently "under consideration" in light of the spiraling inflation mainly caused by Western sanctions against Russia.
Biden had stated in May that Washington may reconsider tariffs imposed on Chinese imports to combat inflation. US Treasury Secretary Janet Yellen asked the administration on Wednesday to eliminate some tariffs, stressing the harm they do to US consumers and businesses.
"I am considering it. We did not impose any of those tariffs, they are imposed by the last administration, and they're under consideration," Biden said during a press conference in Tokyo when asked whether he shares Yellen's opinion and is considering tariff reductions.
Tariffs on Chinese imports have been a source of dispute within the Biden administration for months, with Yellen being a vocal supporter of the move. The US Treasury Secretary feels that lifting tariffs is an effective way to reduce inflation in the country, despite rising energy and food prices.
This view is disputed by US Trade Representative Katherine Tai and other officials who see tariffs as part of a broader US plan to address China's trade practices.
To balance the bilateral trade deficit, the US, under the Trump administration, raised taxes on select Chinese imports in 2018. The following year, both countries traded multiple rounds of retaliatory tariffs. The Trump administration and the Chinese government inked a two-year trade agreement known as Phase One in January 2020.
Washington agreed to keep 25% tariffs on Chinese imports worth around $250 billion per year and 7.5% levies on items worth $120 billion. China, for its part, has agreed to buy $75 billion in US industrial goods, $50 billion in energy, $40 billion in agricultural products, and up to $40 billion in services.
In December 2021, Beijing stated that it had made sufficient efforts throughout the two years to meet the agreement despite the COVID-19 outbreak and expressed optimism that Washington would likewise work to establish favorable conditions for future bilateral trade development.
