The Wall Street Journal and Bloomberg report on the weekend of July 4th, the administration is still discussing the issue internally. It is hoped that tariffs on some goods unrelated to national security will be lifted immediately, the government will resume the process of applying for "exclusions" of certain goods, and tariffs on cases will be further increased. -Case by case.
On Monday, Politico reported that the government was considering raising tariffs worth about $ 10 billion immediately. If correct, that would represent a small portion of the $ 370 billion worth of tariffs imposed on Chinese goods during the Trump administration.
Long process
The Biden administration has pressured the business community to deal with tariffs that actually act as taxes on American consumers. I received it. Since he took office in early 2021.
In many official statements dating back to September last year, the administration has indicated that it will at least consider revisiting tariffs, but supporters have so far wasted concrete suggestions. I was waiting for you.
In a pre-parliamentary testimony last month, Treasury Secretary Janet Yellen said, "This administration has inherited a series of ... tariffs imposed by the Trump administration, but it actually serves our strategic interests. I don't think it was designed like that. "
Yellen added, "We are looking at them and aiming to restructure their rates in a more strategic way."
According to a statement from the Ministry of Finance, Yeren and China's Deputy Prime Minister Liu He discussed tariffs at a video conference on Tuesday. Secretary of State Antony Blinken is expected to meet with Chinese Foreign Minister Wang Yi during his trip to Asia on Saturday, and sanctions may also be on the agenda.
Biden and Chinese President Xi Jinping will speak later this month.
Potential Impact
In an analysis released in March, the Peterson Institute for International Economics was full of tariffs imposed by Trump. We investigated the impact of the abolition. You will have a government during the trade war. The country concludes that it will experience a temporary decline in inflation of about 1.3%.
"If inflation is rampant above 7%, a 1.3 percent point haircut may seem small, but relief is not trivial," the report said. Found. The average American household saves $ 7,97 a year, according to the report.
But experts said there was no reason to expect inflation to be significantly curtailed by eliminating tariffs on Chinese goods of just $ 10 billion.
"Will that have a big impact? I think the answer is no. Not in the short term," William Reinsch, Scholl Chairman of International Business at the Center for Strategic and International Studies, told VOA. rice field. "If they come up with the removal of a $ 10 billion range of obligations, that's a rumor, but it's not that much."
"No matter what he does, both sides will be unhappy." Let's do it, "said Rheinsch. "Business will say it's too little, and labor will say it's too much. But if it's only $ 10 billion, I think the business is probably having a better discussion. "
" If you only do $ 10 billion out of $ 300 billion, you're only looking at a small portion of it ($ 797 savings for households), "general economic trade. Director Scott Lincicom said. At the Cato Institute. "And frankly, the impact of inflation could be zero, especially given that all other tariffs remain intact by the time it happens."
Lincicome Added: Again, $ 10 billion out of $ 300 billion isn't really. I'm going to move the needle.
Possible investigations
The Biden administration also considered announcing a new investigation into China's trade practices under Section 301 of the Trade Act. Is believed to be. 1974.
Trump has used the authority under Section 301 to begin the investigation in 2017. As a result, China is engaged in unfair trade practices and will eventually be subject to tariffs in 2018.
If a new investigation is started, the administration will take a year to complete it. The new survey could have a significant impact on how China responds to short-term tariff cuts.
"The reaction of China's exports to the rollback of US tariffs is very uncertain," said Chad Bown, a senior researcher at the Peterson Institute for International Economics, in an email exchange with VOA. Said. "It may depend on the size of the U.S. tariff cut, the types of products such as consumer goods and intermediate inputs, when the president chooses to cut tariffs, and how long exporters expect new tariffs to remain effective. There is.
"For example, for products that can be put into stock, for example, if, as a result of the new Article 301 investigation, tariffs are expected to return, there will be a large export reaction. It can happen, "Bown said.
