Wall Street waited for the latest inflation data to be released on Wednesday (11th), and US President Biden (10th) hinted on Tuesday (10th) that the White House is considering lowering or canceling Chinese tariffs in response to the highest inflation in more than 40 years.
The US consumer price index (CPI) continued to soar in March, with an annual growth rate of 8.5%, a new high in more than 40 years. Wall Street is preparing for another April CPI data that may exceed 8%. Some experts and business groups have called on Biden to roll back tariffs on China to curb stubbornly high inflation.
In a statement on Tuesday, Biden pointed out that Qualcomm inflation is hurting American families, and fighting inflation is his top priority in office. He believes that there are two main culprits for high inflation. One is the complete out-of-control global supply chain and demand caused by the new crown epidemic, and the other is the war launched by Russian President Vladimir Putin once morest Ukraine, which has led to a sharp rise in oil prices.
When asked by the media whether the Chinese tariffs will be reduced or eliminated to reduce the high inflation in the United States? Biden responded: “The U.S. government is reviewing the Trump-era tariffs on Chinese imports, we’re discussing it, we’re looking at how to have the most positive impact, and we haven’t made any decisions yet.”
White House spokeswoman Jen Psaki later pointed out,The Biden administration reinstated tariff exemptions for 352 Chinese goods in March, an ongoing tariff review and hopes to do more in the future.
Biden administration officials have recently divided views on easing tariffs on China. The Trump-era tariffs on regarding $360 billion in Chinese imports to the U.S. each year will expire in early July, U.S. Treasury Secretary Janet Yellen said. and Commerce Secretary Gina Raimondo in favor of easing tariffs on China. However, U.S. Trade Representative Katherine Tai is reluctant to give up the bargaining chip on tariffs on China in an effort to reshape Chinese economic behavior.
