US trade chief signals China tariff relief an option as prices soar
- Biden’s top trade negotiator Katherine Tai said, however, that the duties should be looked at in context of wider economic policy
- She warned that the tools the US deploys to fight inflation must not undermine the goal of changing the relationship with Beijing
President Joe Biden’s top trade negotiator signalled that relief from US tariffs on China is one option under consideration to confront the fastest inflation in four decades, while cautioning that the duties should be studied in the context of broader economic policy.
The tariffs should be examined as part of a look at strategies across the board, including monetary, fiscal and tax policy, US Trade Representative Katherine Tai said in interview at the Milken Institute Global Conference in Los Angeles on Monday.
Tai said that the US needs to make sure that the tools it deploys to meet the short-term challenge of inflation are effective and do not undermine the medium-term goal of changing the relationship with China.
The tariffs have spurred some companies that were producing in China for the US market to move their manufacturing and base of operation to other countries, Tai said.
“Are they on the table or not? All tools are on the table,” Tai said when pressed to address the tariffs.