WASHINGTON: President Joe Biden could soon introduce a modest relief package to roll back some US tariffs imposed on China in a bid to tamp down inflation, said Clete Willems, a former top White House trade negotiator.
“I think we’re going to see something relatively modest in the short term. But over the long term, what I’m hopeful is that this will lead to a process that tries to rationalize things more broadly and link them more closely to their supply chain objectives,” Willems, currently a partner at Akin Group, told media on Wednesday.
In May, Biden said he could drop some of the tariffs imposed against Chinese imports to help control rising consumer prices in the US.
President Biden could decide “pretty soon” on a modest relief package to roll back some US tariffs imposed on China in an effort to tamp down inflation, said Clete Willems, who previously served as deputy director at the National Economic Council.
“What we are expecting that the president is deciding on is a relatively modest list of potential tariff suspensions in order to fight inflation. Some of the reports indicate that it’s on the order of magnitude of about $10 billion out of over $360 billion that are currently being imposed on China,” Willems, currently a partner at Akin Group said, CNBC reported.
Willems, who was a top White House trade negotiator during the Trump administration, noted the move is likely to come together with other actions “that are perceived as tough on China” like a “potential new investigation into China’s industrial subsidies.”
“That’s really important for the Biden administration to manage things at home, so that they don’t get criticized by the China hawks for being weak,” said Willems, adding, “I do think we’re going to see some movement pretty soon.”
The White House is currently reviewing the penalties imposed under former President Donald Trump — which raised prices on everything from diapers to clothing and furniture. The process was triggered by legal provisions, rather than a US political willingness for a reset in relations.
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