Among us trade lobbyists in Washington, D.C., rumors are increasing that President Biden might make an announcement in the coming weeks over the future of tariffs on Chinese imports. The current administration has thus far maintained the policies of the previous – 25% tariffs on roughly 7,000 imported goods and 7.5% on over 3,000 products.
President Biden is under increasing pressure to lift some or all of the tariffs in an attempt to lower inflation despite three studies showing lifting of all the tariffs on all Chinese imports would only lower inflation by a range of 0.26-1.20%. Sources in the Biden administration say lifting of all the tariffs is not under consideration, and major unions recently sent a warning in the form of a letter calling on President Biden to keep the tariffs in place. Conversations in Washington and public statements indicate the White House will likely lift tariffs on some consumer goods and possibly remove and replace others on select industrial items.
Rumors are we could hear an announcement on tariffs by the end of the month. This is a parallel track to a formal review underway by the U.S. Trade Representative of the tariffs after four years of being in place.