China’s military exercises over Taiwan have led Biden administration officials to rethink whether to remove some tariffs or impose new ones against Beijing, leaving those options on the sidelines for now, according to sources familiar with the matter. take cognizance of these considerations.
President Joe Biden’s team has been grappling for months, considering various ways to reduce the cost of tariffs on Chinese imports imposed under former President Donald Trump, as the White House tries to cushion the impact of a sharp rise in inflation. .
Under the scenarios under consideration are considerations for a combination of eliminating some tariffs, triggering a new investigation (Section 301) into potential areas of new tariffs, but also expanding a list of tariff exemptions to help US companies that can source specific products from China.
President Biden has not made a decision on this issue and all options remain open, the White House announced.
Tariffs make Chinese products more expensive for American companies, in turn increasing the financial cost of buying the products for US consumers.
On the other hand, the reduction of inflation is a key goal for the economic policy of the Democratic president Biden, in view of the mid-term elections for the Congress to be held in November, as it is possible that the Republicans will gain a majority in at least one of the two legislative bodies of Congress.
But Beijing’s reaction to House Speaker Nancy Pelosi’s visit to Taiwan last week prompted a rethink by U.S. administration officials, who are keen to avoid doing something that could be interpreted by China as escalation of tension in bilateral relations, while on the other hand, they seek to avoid moves that would make them appear to be backing down in the face of Beijing’s aggression.
China’s armed forces have for days engaged in ballistic missile launches and simulated attacks against democratically-ruled Taiwan, which China considers its own territory.
“I think Taiwan is changing everything,” said a source briefed on the latest developments in the decision-making process on the said issue, while details were not released.
“The president had made no decision prior to the events in the Taiwan Strait and has yet to make a decision, period. Nothing has been abandoned or suspended, and all options are open,” said White House spokeswoman Saloni Sharma. “The only person who will make the decision is the president, while he will do so on the basis of serving our interests”, emphasized the same representative.
SOURCE: AMPE
Source: Capital
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