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Former Trump adviser demands higher Trump tariffs in China

New York (CNN Business)Former Trump economic official Gary Cohn says President Joe Bidenlifts Trump I agree with-tariffs of the era imposed on China to deal with high inflation.

"These tariffs are increasing the cost of many goods that US consumers are buying," Korn told CNN.

Korn, nowIBM (IBM)Vice Chairman is a supporter of free trade and Frequent clashes with Trump officials in favor of tariffs.

"Overall, some tariffs make sense, but many tariffs act as sales taxes," he said.

For months, Biden has been discussing whether to roll backTrump tariffs to fight the worst inflation in the United States in 40 years. Somemajor business groupshave called for Biden to raise tariffs, butunion officials have warned. No decision has been made.
Goldman Sachs former CEO Kornfrom the Trump administration in March 2018 after Trump vowed to impose tariffs on steel and aluminum. Announced withdrawal.

"There are different views on trade. My view on trade is very simple. If you want to make anything here in the United States, you need to protect the manufacturer," CNN said. He told CNN. "If we don't make anything here in the US and we don't intend to make it here in the US, I don't think we should impose tariffs on it."


On Tuesday, Biden said he would talk to Chinese President Xi Khongping as the US president is considering whether to ease tariffs on China. Treasury Secretary Janet Yellen said some of these tariffs are harmingfamilies and businesses.

"If we eliminate these tariffs, the prices of these goods should go down," Korn said.

But he admitted that this is not all cures. This is all about inflation that worsened unexpectedly in May.

"There is nothing to solve inflation. We have to do as much as we can to lower prices," he said.

Of course, there are bipartisan concerns about China's trade practices. Eliminating tariffs can undermine efforts to address issues such as intellectual property theft, illegal subsidies, and the dumping of cheap products into foreign markets.

Not to mention the fact that China does not comply with the Phase 1 trade agreement signed in early 2020. China purchased only 57% of US goods and services exports between 2020 and 2021. This agreement is estimated by the Peterson Institute for International Economics.

When asked if lowering tariffs could reward China, which did not survive until the end of the deal, Korn pushed back.

"Are we rewarding China? Will US citizens reward them because they buy these goods and rob them of more disposable income no matter what?" Mr. Korn said.

'Control our own destiny'

In addition to lowering tariffs, Korn inflates lawmakers by investing in the U.S. supply chain. I urged you to deal with it. Specifically, he called on Congress to pass a bipartisan innovation law, a billbacked by the White House, which invests in domestic computer chip manufacturing.

"Obviously, chips and computer chips are important limiting factors in the sheer number of products we all need as consumers in the United States. It's almost everything in our daily lives. Affects us in the part of, "Corn said. "It starts with the safety of national and military equipment and extends to our everyday appliances where we are on the countertops and everything in the middle."

The shortage of computer chips It has disrupted car production, pushing up prices for both new and used cars, contributing to today's high inflation.

Mr. Korn said the United States relies on Taiwan and China for most of its high-end computer chips, including weapons systems and semiconductors on airplanes.

"We need to regain manufacturing here in the United States so that we can manage our supply chain and our destiny," Korn said.

Last summer, the Senate passed a bill that would spend $ 52 billion on computer chip manufacturing and research in the United States. The funds have not yet been signed by law and lawmakers are still disputing details.

Earlier this month, Senator Elizabeth Warren, Senator Bernie Sanders, and Senator Sean Kastencalled for a "corporate guardrail" to keep money from going to the CEO's lineup. .. Lawmakers sought conditions that would prohibit recipients of funds from buying back their shares, outsourcing work, and abolishing existing collective bargaining agreements.

"We need guardrails to create and defend American jobs," lawmakers wrote in a letter.

However, Korn argued that these restrictions would discourage companies from investing in the United States.

"Unfortunately, US companies will not receive money if they install these guardrails," Korn said. "They will receive money from foreign governments and build facilities abroad."