Former U.S. Ambassador Says Lifting China Tariffs Could Slash Inflation by 1% Over Time, Help Biden in Midterms

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Former U.S. Ambassador Says Lifting China Tariffs Could Slash Inflation by 1% Over Time, Help Biden in Midterms
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With recession on the horizon, an increasing number of U.S. observers say the Biden administration should lift U.S.-China tariffs, or “taxes on goods”

The U.S. government is reviewing the Trump-era trade tariffs on Chinese goods, a process that was triggered by legal provisions rather than a U.S. political willingness for a reset in relations.

Not only did China not meet targets set by the U.S. in the trade deal, analysis from the Peterson Institute for International Economics show the tariffs increased inflation for both U.S. consumers and producers. "Some Chinese firms were able to evade them by re-routing shipments to the U.S. through third countries, mainly in south-east Asia. This may have offsetAdelman, the former ambassador, said Biden could remove certain tariffs without the onerous task of seeking permission from Congress in two ways.

However, Robert Daly, director of the Wilson Center's Kissinger Institute on China and the U.S. was skeptical about both Washington's drive to lift tariffs and their contribution to inflation.

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