Joe Biden weighs cuts to Donald Trump’s China tariffs as inflation roars
- ‘No decision has been made,’ the US president says, but recent comments by administration officials suggest a shift is being considered
- The White House does not want to be seen as weak on China, but surging costs of goods and services are placing pressure on Biden ahead of the midterm elections
Under pressure to tame high inflation, US President Joe Biden said on Tuesday that discussions are ongoing about potentially dropping trade tariffs on China that were imposed by his predecessor Donald Trump.
“We’re discussing that right now,” Biden told reporters. “I’m telling you, we’re discussing it, and no decision has been made on it.”
The president was responding to a question from the media after he gave a speech on inflation, during which he told Americans that he understands what they are grappling with.
“They’re frustrated,” Biden said of Americans paying more for goods and services across the board. “I don’t blame them.”
The leader is under pressure from some quarters to remove the tariffs in a bid to cut roaring US inflation by making imports cheaper.
Trump imposed the duties to punish allegedly unfair trade practices by Beijing. Lifting the measures would likely bring a political risk for the White House, which does not want to be branded weak on China.
However, recent comments by deputy national security adviser Daleep Singh and Treasury Secretary Janet Yellen about the deflationary impact of tariff reductions have sparked speculation the administration is thinking about changing course.
US Trade Representative Katherine Tai, whose office is conducting a review of the tariffs on Chinse goods, said last week that all tools were on the table to address rising inflation, including tariff cuts, but that any policy shift needed to keep the administration’s medium-term goals in mind.
US trade office says it has begun process on whether to lift Chinese tariffs
With a spike in inflation having pushed annual consumer prices more than 8 per cent higher, Biden on Tuesday focused on other measures, highlighting his release of oil from strategic petroleum reserves and pressure on companies to return record-high profits to consumers in the form of lower prices.
The president said the Covid-19 pandemic, coupled with supply chain issues and Russia’s war on Ukraine, are to blame for the inflation spike. His administration rushed trillions in pandemic aid and infrastructure spending into the economy, which Republicans and some economists blame for higher costs.
“We’re in power,” said Biden, asked whether he deserves blame for high prices. “We control all three branches of government. Well, we don’t really,” he added, lamenting Democrats’ ability to get other spending bills passed because of its narrow control of Congress.
Biden said the US Federal Reserve should, and will do its job to control it. The US central bank raised interest rates by half a percentage point last week and is expected to roll out additional hikes this year.
The president did not announce new policy measures in the speech, which took place a day before new consumer price data is expected to show inflation remained elevated through April.
Instead, Biden sought to direct blame over inflation to Republicans, with six months before the November 8 congressional elections that will determine whether Democrats can retain control of the Senate and House of Representatives.
Biden repeatedly attacked Republicans loyal to Trump for holding up his agenda, lamenting that Democrats’ majority in Congress is not sufficient to gain approval of his priorities.
Fewer than half of US adults – 44 per cent – approve of Biden’s handling of the presidency and they rate the economy as the country’s most important problem, according to a Reuters/Ipsos poll last week.
Additional reporting by Agence France-Presse
