The Biden administration is split on whether to pare back tariffs on imports from China in an effort to cut consumer costs and reduce inflation, as the White House gives renewed consideration to a step that has divided officials.
On one side of the debate within the administration are Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo, who favor easing the tariffs on some of the roughly $360 billion annually of Chinese imports put in place under the Trump administration, according to people familiar with the matter.
On the other are Trade Representative Katherine Tai and others who are reluctant to relinquish U.S. leverage over China in a continuing effort to reshape Chinese economic behavior, according to the people.
President Biden has been undecided on the question but has recently revisited the issue as the White House looks to reduce the highest inflation in four decades, according to one of the people. The discussions come as the administration on Tuesday started a legally required review of the Trump-era duties. The U.S. Trade Representative is required to study the impact on tariffs first imposed in 2018 on the economy after four years.
The Biden administration is split on whether to pare back tariffs on imports from China in an effort to cut consumer costs and reduce inflation, as the White House reconsiders a step that has divided officials.@aduehren @TokyoWoods @learyreportshttps://t.co/AhhV2Gfaou
— Jonathan Cheng (@JChengWSJ) May 4, 2022