Will the Biden administration only lift 10 billion out of 370 billion in tariffs on China?
As the U.S. government considers lifting some tariffs on China to curb inflation, a number of Western media have further revealed a more detailed plan, which includes three components:
1. Eliminate tariffs on approximately $10 billion of the approximately $370 billion of Chinese exports to the United States;
2.
Open a new tariff exclusion procedure to allow companies to obtain tariff exemptions for imported goods from China;
3.
4. At the same time, the “301 investigation” will be used to launch a tariff investigation on key Chinese industries including semiconductors, and a new round of tariffs may be imposed on the semiconductor industry.
However, this plan is far from satisfying all walks of life in the United States. As of the 5th, the Office of the U.S. Trade Representative had received more than 400 requests from the industry to oppose cancellation. The Peterson Institute for International Economics and others said that the removal of tariffs is only a drop in the bucket in reducing the U.S. inflation rate. At the same time, the U.S.-China Business Council (USCBC), on behalf of more than 260 U.S. companies operating in China, called for the complete elimination of tariffs on China. Former U.S. Ambassador to Singapore David Adelman emphasized that “removing tariffs will not only benefit American consumers in the short term, but over time it will help the president recalibrate U.S.-China relations.”
The U.S. political news website “Politico” reported on the 5th that according to three officials familiar with the plan, the Biden administration will make a final decision within this month. Its tariff plan for China includes three parts: The first is to cancel 10 billion worth of tariffs. The specific list of additional tariffs on U.S. dollar goods, including bicycles, clothing and other daily consumer goods, is still being proposed, but it only accounts for less than 3% of the U.S. tariffs on Chinese goods worth a total of $370 billion since the Trump administration. %. The second part is that the Office of the U.S. Trade Representative will launch a new tariff exemption process for U.S. companies importing Chinese products. Companies can only be exempted after submitting an application and subject to government approval. The third part is to launch a new Section 301 investigation into “industries heavily subsidized by the Chinese government”. The report mentioned China’s high-tech industries such as semiconductors and batteries.
The United States is currently facing a severe inflation problem not seen in 40 years. The U.S. economy declined in the first quarter. The economy in the second quarter, which is already halfway through, shows signs of greater recession than in the first quarter. The Biden administration has already found it difficult to control food, gasoline and other consumer goods. the impact of high prices.
The inability to alleviate inflation and curb the economic recession has caused Biden’s support rate to plummet, and reducing tariffs on China is one of the few policies that the Biden administration can adopt. The Biden administration has also frequently released news that it will reduce tariffs on Chinese goods to calm public opinion. However, judging from the news recently disclosed by the US media, the Biden administration’s economic adjustment space has been locked up by extremely influential monopoly interest groups in the United States. die.
Reducing tariffs on Chinese goods will be beneficial to U.S. small and medium-sized enterprises and consumers by significantly reducing costs. U.S. analysts believe that the catfish effect brought about by low-priced Chinese goods after tax reductions can drive overall price cuts in the U.S. consumer goods market, ultimately reducing the U.S. inflation rate by about 1% purpose. However, when U.S. monopoly capital is making huge profits from high prices, it is not willing for Chinese goods to enter the U.S. market at low prices, and uses political lobbying to encourage the Biden administration to build higher tariff barriers against China and implement stronger trade protection. ism.
The Biden administration’s new tariff plan for China disclosed by the US media will cancel tax increases on US$10 billion of US$370 billion of tax-increased goods. This is a “make do” explanation to the American people who are troubled by high prices. The launch of a new tariff exemption procedure for imported goods from China and the launch of a new trade investigation on China’s high-end industrial products are the prelude to launching a more intense technological war against China.
The U.S. Biden administration, whose space for economic policy adjustments has been locked up by interest groups, has found it difficult to provide solutions to the economic difficulties faced by the American people.
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