The Wall Street Journal reported on Monday, citing people familiar with the matter, that U.S. President Joe Biden could announce as early as this week a decision to ease tariffs on Chinese imports. The move could reduce inflation in the US, but it could also ease pressure on China.
The report, citing unnamed people familiar with the matter, said that could include suspending tariffs on consumer goods such as clothing and school supplies, and that a Biden administration could launch a broad framework that would allow importers to apply for tariff exemptions.
After the report was published, offshoreRMBIt rose as much as 0.3% against the dollar to a one-week high of 6.6807 per dollar.Australian dollarExtending gains, it was up 1% against the dollar at 0.6884.New Zealand Dollar FollowsAustralian dollarHigher, up 0.9% to 0.6250.
Democratic senators also called on Biden to consider repealing Trump-era China tariffs, saying the move failed to significantly change China’s trade practices and fueled high prices for Americans.
According to Bloomberg, China is the United States’ largest trading partner and its strongest competitor. While Trump-era tariffs have protected some companies from Chinese imports, those in the manufacturing sector that use Chinese imports as inputs have been hurt by higher prices.
Biden administration officials appear to be divided on tariffs. U.S. Trade Representative Dai Qi said at a recent Senate hearing that tariffs are “an important bargaining chip.” Treasury Secretary Janet Yellen said in June that the tariffs hurt U.S. consumers and businesses and sent inflation to a 40-year high.
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