US President Joe Biden may reduce tariffs on some Chinese imports in an effort to slow the country's soaring inflation rates. The Biden administration is wrapping up a mandatory review of tariffs on Chinese imports imposed by former President Donald Trump, according to The New York Post.
American businesses and labour unions that have favoured keeping the tariffs in place must respond by Tuesday before the administration makes a final decision. According to The New York Post, citing the Wall Street Journal, Biden has repeatedly postponed tariff cuts due to policy disagreements among his own senior aides and Cabinet secretaries.
Tariffs are reportedly supported by Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo because they are ineffective in addressing alleged trade practices by Beijing. While US Trade Representative Katherine Tai and national security adviser Jake Sullivan supported maintaining tariffs as a tool for exerting leverage over China.
According to The New York Post, Biden hopes that lifting tariffs will reduce the cost of consumer goods, which have risen sharply in the last year due to record levels of inflation. The consumer price index remained at an all-time high of 8.6 percent in May, the highest since 1981, owing to skyrocketing oil prices as well as rising food, rent, and healthcare costs.