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Biden says the White House could lower tariffs on Trump China to lower consumer prices

president Joe Biden He said he could reduce some of the tariffs on Chinese imports to curb US consumer price inflation, as Wall Street prepares for another inflation report above 8%. ..

The White House is reviewing the penalties imposed under the former president Donald Trump In his speech from Washington to the country on Tuesday, Biden said he could choose to raise prices for everything from diapers to clothing and furniture and remove them altogether.

“We are looking at what has the most positive impact,” Biden said, adding that tariff elimination is currently under discussion.

Trump has imposed many fines on Chinese goods in a lengthy trade war with Beijing to strengthen American-made goods.

Whether eliminating Trump’s taxes on Chinese products cools inflation is controversial among economists, but complete tariff mitigation or elimination is all available to mitigate costs. It’s one of the few options available to the White House, who aspires to pull the lever.

The President repeated the combination of the Covid-19 protocol at home and abroad and the President of Russia Vladimir Putin’s The Ukrainian invasion has caused US prices to skyrocket at the fastest pace since the early 1980s.

“I want all Americans to know that I take inflation very seriously,” Biden said. “The first cause of inflation is a once-in-a-century pandemic. It not only closed our world economy, but also completely destroyed our supply chain and demand.”

“And this year there is a second cause, Mr Putin’s war in Ukraine,” he added, referring to the dramatic rise in oil prices caused by the Moscow attack in early 2022.

Crude oil futures in western Texas are well below the $ 130 / barrel high high seen in March, but oil contracts delivered in June ended at around $ 100, above $ 30 at the beginning of the year. increase.

The president also said the war raised contract prices for key foods such as wheat and corn, rising 40% and 30% in 2022, respectively. Russia and Ukraine together supply more than a quarter of the world’s wheat.

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Economists say it is due to both a pandemic, especially a combination of recent serious efforts to curb an increasing number of incidents in China, and a war in Ukraine. Inflation rate rose 8.5% last year Wall Street is enthusiastically reading the Labor Department’s next report on inflation in April, due out Wednesday at 8:30 am.

Economists surveyed by Dow Jones expect a report showing inflation has risen 8.1% in the 12 months to April.

Biden’s comment the day before the release is the government’s latest attempt to convince the American public that the White House is exploring all available options to curb price increases. Dozens of polls show that Americans now believe that inflation is a major problem facing the United States and a threat to economic recovery from the Covid recession.

Although some economic measures have made a remarkable recovery (US employment rate was stable at a low level of 3.6% last month), high gas and grocery bills continued to erode salaries and nationwide. Is causing anxiety.

Biden has been trying to alleviate these frustrations over the past few weeks through regular speeches.

Last week he advertised Significant reduction in federal deficit This year was a significant departure from what he characterized as rampant spending by his Republican predecessor, a step towards financial responsibility and low prices.

Republicans argue that the surge in inflation is largely due to the Democratic Party’s ambitious economic policies.

Republicans also expect higher federal spending if Biden and his democratic colleagues were able to pass a set of climate, housing, and labor laws formerly known as the Buildback Better Program. Point out that the deficit may have been larger.

These attacks pose political problems for Democrats as they face a difficult struggle to maintain parliamentary control in the major midterm elections in November. The Senate is divided between the Democratic Party and the Republican Party 50:50, and the House of Representatives is divided into 221-209 in favor of the Democratic Party.

Biden countered the Republican thorns in a recent comment by defeating the government’s efforts to lower the cost of prescription drugs and raise taxes only on the wealthiest Americans.

“What is Congressional Republican Plan? They don’t want to solve inflation by lowering your costs. They want to solve it by raising your taxes and lowering your income. “Biden said on Tuesday. “Their plans will make the actual working families poorer.”

Biden says the White House could lower tariffs on Trump China to lower consumer prices

Source link Biden says the White House could lower tariffs on Trump China to lower consumer prices

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