Biden Administration Considers Rolling Back Trump-Era China Tariffs to Cool Inflation

The Biden administration is pondering a reduction in tariffs on Chinese goods as a way to combat record-high inflation.

Secretary of Commerce Gina Raimondo spoke about the potential move over the weekend, saying that President Biden has asked her and her team to delve into the issue.

The Consumer Price Index, one of the country’s best indicators of inflation, reached a 40-year high in March. The 8.5% annualized increase for the month dipped slightly in April, but high inflation is expected to continue.

Several of the tariffs imposed by the Trump administration impact the cost of household goods that could be purchased at a lower cost from China. Raimondo has previously heaped praise upon some of the former administration’s tariffs on China, calling them “very effective.”

Trump imposed the tariffs, in part, to stop China from flooding international markets with inexpensive steel, which resulted in higher prices on such goods as cars and washing machines.

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