On Wednesday, legislators said Biden’s supreme trade negotiator, including what he had planned for the government’s trade strategy for China, tariffs on Chinese goods imposed by his predecessor, if any. Pressured.
The Biden administration has been pressured to ease some or all of tariffs as a way to deal with the fastest-paced inflation in 40 years. US trade representative Katherine Tai told lawmakers that tariffs and other decisions on actions against China were “pending” with the president. But she also defends the importance of levies, calling them “significant leverage” in relations with China, and saying that there are limits to what can be done to address short-term challenges like inflation. Stated.
“Trade negotiators never leave leverage,” she said.
Biden is considering a decision to lift some of the taxes levied on over $ 360 billion of goods manufactured in China, including some consumer products. Proponents of the move say that taxes are often passed on to American consumers who buy Chinese goods, which could help mitigate inflation.
However, tariff advocates say that tariff relief will remove barriers aimed at protecting American industry from cheap Chinese products. They also point out the fact that China has not fulfilled all the promises it made to the United States as part of the 2020 trade agreement established during the Trump administration. Energy and other products by the end of 2021.
When asked on Tuesday whether to talk to Chinese leader Xi Jinping before deciding on tariffs, Biden said he was going to have a conversation, but said, “We haven’t set the time yet. “.
Mr. Thai told lawmakers Wednesday that it was worthwhile to discuss their achievements under the trade agreement with the Chinese, given that “China attaches great importance to international credibility.” rice field. But she said, “it wasn’t enough to motivate China, especially for the success of these purchase commitments.”
“That’s what led us to conclude that it’s time to turn the pages of the old playbook,” she said. “We need to exercise our rights with respect to China and protect the interests of our economy as a whole.”
Mr Thailand explained that China has a state-led economic model that allows it to target the entire strategic industry and take over. She said this approach proved to be fundamentally incompatible with the more market-driven American economy.
“We need to look at this big picture,” she said, regarding tariff cuts.
She said it was the government’s responsibility to help Americans relieve the “economic challenges and pinches” they were experiencing. However, she suggested that maintaining tariffs would be a more effective long-term tool for maintaining US competitiveness over China.
“We can influence the competitiveness of the economy in the medium to long term,” she said. “When it comes to short-term challenges, there are limits to what we can do, especially when it comes to inflation.”