Biden prepares action to reorganize Trump's tariffs on China
The administration is likely to announce measures this month to raise narrow tariffs on Chinese imports.
Some government officials and external economists say Chinese tariffs Identified to pull up some of the. One way to partially mitigate high prices US consumers are currently paying. | Mark Schiefelbein / AP Photo
President Joe Biden is preparing to change some of the tariffs on China by former President Trump, and a decision is expected this month.
The government is likely to announce action this month to raise narrow tariffs on China's imports, said three industry insiders and a former federal official with knowledge of management plans. A senior government official who spoke anonymously about the policy plan said no final decision was made on the timing. The decision comes as the White House continues to look for ways to tame historically high inflation outside the Federal Reserve's actions to raise interest rates. Some government officials and outside economists have identified raising some of China's tariffs as a way to partially ease the high prices currently being paid by US consumers. But in its current form, tariff plans include Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo, who are pushing for broader tariff easing as a way to combat inflation and anticipate voters. Will be a defeat for Yellen officials. In the mid-term Biden is working to counter the rise in prices.
Details of the administration's plans are final However, three parts can be involved. First, narrow tariffs could be lifted and tariffs on consumer goods such as bicycles increased. It is still under debate which tariffs will be included in the initial tariff relief, but the value is expected to be relatively small, according to two sources. Of the approximately $ 370 billion Trump has imposed, $ 10 billion worth of imports is one value under consideration.
At the same time, the government will announce that US trade officials will begin a new exclusion process for companies to win China's tariff exemptions. Earlier this year, the USTR granted a narrow range of tax exemptions on 352 imports from China, but lawmakers in favor of businesses and free trade urged agents to give further carve-outs. ..
In addition to these actions, the administration has also launched a new tariff investigation under Section 301 of the Trade Act of 1974, targeting the sector of the Chinese economy, which is heavily subsidized by the Chinese Communist Party. present. The U.S. has long been dissatisfied with Beijing's support for high-tech sectors such as semiconductors and batteries to unfairly disadvantage foreign competition, and the new tariff investigation will level the competition for U.S. companies. Therefore, it may bring new obligations to these sectors.
However, senior government officials emphasized that no tariff decisions have been made and discussions are ongoing.
The decision is likely to be made in the same month that Biden speaks with Chinese President Xi Jinping. However, officials emphasized that the still-planned call has nothing to do with tariff issues and is part of an ongoing effort to maintain open communication between governments.
This announcement represents the culmination of a year-long debate at the White House on when and how to reshape Trump's trade heritage in China. Last year's administrationconsidered a plan to combine tariff relief on consumer goods with new obligations for high-tech Chinese goods, but before announcing the plan, USTR Katherine Tai had an economic conversation with Chinese responders. You have chosen to allow it to do.
The White House was ready to proceed with plans at the end of last winter when the first talks between the Biden administration and China turned out to be futile, but Russia invaded Ukrainepushed those plans back. Many of the administration's economic and national security authorities focused on Kieu's support and Moscow's punishment.
This action will be a victory for Thailand and Secretary of Labor Marty Walsh, along with an organized labor group that has promoted the maintenance of most of the tariffs of the Trump era. Thailand has repeatedly stated that tariff hikes will not have a meaningful impact on inflation, but will sacrifice her leverage in negotiations with China.
The upcoming tariff measures will correspond to an internal USTR review of Chinese tariffs, which is required by law to take place this summer. So far, more than 300 requests for tariff extensions have been received from domestic companies.
