US plans to lift some Chinese tariffs to fight inflation

(Adds details and quotes from interview on chips, inflation, tariffs, stock photos)

By Kanishka Singh

WASHINGTON, June 5 (Reuters) – U.S. Commerce Secretary Gina Raimondo said on Sunday that President Joe Biden had asked his team to look into the possibility of lifting some tariffs on China put in place by the former President Donald Trump, to combat the current crisis. high inflation.

“We’re looking at it. In fact, the president asked us on his team to analyze this. So we’re in the process of doing it for him and he’s going to have to make that decision,” Raimondo told CNN in an interview. on Sunday, when asked if the Biden administration is considering lifting tariffs on China to dampen inflation.

“There are other products – household items, bicycles, etc. – and it may make sense” to lift tariffs on those, she said, adding that the administration had decided to keep some of the tariffs on steel and aluminum to protect American workers and the steel industry.

Biden has said he is considering scrapping some of the tariffs imposed on hundreds of billions of dollars worth of Chinese goods by his predecessor in 2018 and 2019 amid a bitter trade war between the world’s two largest economies.

China also argued that the tariff cuts would reduce costs for US consumers.

Raimondo also told CNN that she believes the current shortage of semiconductor chips could likely continue until 2024.

“There is a solution (to the shortage of semiconductor chips),” she added. “Congress needs to act and pass the Chips Bill. I don’t know why they are delaying.”

The legislation aims to speed up manufacturing of semiconductors in the United States to give the United States a more competitive punch against China.

Raimondo said she disagreed with the characterization that Biden’s $1.9 trillion U.S. bailout contributed to the current high inflation. Congress passed the COVID-19 relief package a year ago before it was to be signed into law, marking a landmark achievement in Biden’s first year in office.

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^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^^^^^> (Reporting by Kanishka Singh in Washington, edited by Nick Zieminski) (([email protected]; +12024508248;))

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