US president plans to scrap Trump-era China tariffs

US President Joe Biden is debating whether to end or reduce Trump-era tariffs imposed on Chinese imports into the United States, according to reports.

Introduced in 2018 under the Trump administration, tariffs on more than $300 billion in imports from China – including products and components vital to consumer and commercial technologies – were inherited by the administration Biden.

According to Bloomberg, President Biden and his cabinet discussed the inflationary impact of these levies with Treasury Secretary Janet Yellen. The cabinet was considering all possible ways to curb inflation and ease the cost of living for Americans, according to the report.

However, industry executives remain skeptical about whether a tariff cut would have a meaningful impact on US consumer inflation – recently hitting a 40-year high – in the near term.

According to the Financial Times, Biden’s cabinet is split over a politically tense issue that could influence November’s midterm congressional elections.

Although he began his tenure by suggesting he was in no rush to scrap tariffs that have been racked up during the trade war with Beijing, the White House wondered if lifting some tariffs would help relieve American consumers. .

But the UK’s pink business daily said deep divisions remained within the administration. On the one hand, Yellen supported removing tariffs to help calm inflation. But U.S. Trade Representative Katherine Tai feared that by cutting tariffs, the United States would lose leverage with China in future negotiations.

In March, the US government announced that it would lift import duties on a specific category: graphics cards. Following this decision, the manufacturer Asus promised that the prices of some of its graphics cards would drop by up to 25%. The company has slashed prices for Nvidia’s GeForce RTX 30-series graphics cards starting April 1, including the RTX 3050, 3060, 3070, and high-end 3080 and RTX 3090 cards.

In 2019, Chinese officials announced a preliminary agreement on the first phase of negotiations with the United States. A statement from the U.S. Trade Representative said the deal required China to make structural reforms and changes in intellectual property, technology transfer and financial services. China also pledged to make major purchases in agriculture and services, while the United States agreed to major changes to Section 301 tariffs.

The statement at the time concluded: “The United States will maintain 25% tariffs on approximately $250 billion of Chinese imports, as well as 7.5% tariffs on approximately $120 billion of Chinese imports. Chinese imports. ®

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