President Joe Biden’s globalist wing in the White House is reportedly suggesting the administration cut U.S. tariffs on China just to score political message points with voters, whether or not a decision reduces inflation.
For months, Biden has considered cutting U.S. tariffs on billions of dollars of Chinese-made goods that were first imposed by former President Trump and won applause from U.S. unionized workers and domestic manufacturers.
Politico says talk inside the Biden White House is ‘heating up’ as the administration grapples with runaway inflation, even though research has largely shown there’s no correlation between US tariffs on China and current inflation.
Yet the White House Biden’s globalist wing, represented by Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo, continues to push the president to cut US tariffs on China. Raimondo, Politico reports, even went so far as to suggest that Chinese tariffs be cut just to score political message points.
Secretary of Commerce Gina Raimondo, meanwhile, focused her arguments on messaging — that its good policy is to cut fares even if the actual impact on inflation isn’t that big.. [Emphasis added]
Yellen, meanwhile, went on to cite a study that says cutting US tariffs on China could save nearly every US household about $800 a year. The study, however, was lambasted by US Trade Representative (USTR) Katherine Tai – a figure in the economic nationalist wing of the Biden administration.
“The problem is if you look at their methodology, and you look at how they think that, you know, inflation can be fought using business tools, they’re assuming a world, and the American economy, that has no no tariffs,” Tai said. said of the study that Yellen keeps citing as evidence to lower U.S. tariffs on China.
“So here’s the thing: Since we’ve been regulating trade, we have tariffs in one form or another, right? Every country still has tariffs,” Tai continued. had inflation. And so I really have to question the premise of this study. And I think it’s either something between fiction or an interesting academic exercise.”
In the New York TimesKim Glas of the National Council of Textile Organizations noted that there is no evidence that tariffs have raised prices for American consumers, as free trade advocates and economic globalists often claim.
Last week, the United Steelworkers (USW) wrote to Biden, pleading with him not to cut US tariffs on China:
Too many American companies have failed to take the necessary steps to deal with the threat posed by the policies of the Chinese Communist Party. Many continue to outsource production, and research and development, undermining US competitiveness and national security interests. They have failed to respond to the clear and continuous signals sent by the CCP that it is not interested in competition, but in conquering and dominating key industries. Our government must act in the national interest strengthen our economy for the future. [Emphasis added]
From 2001 to 2018, US free trade with China removed 3.7 million US jobs from the economy, including 2.8 million in US manufacturing. During that same period, at least 50,000 US manufacturing plants closed.
These massive job losses coincided with a burgeoning trade deficit between the United States and China. In 1985, before China joined the WTO, the US trade deficit with China was $6 billion. In 2019, the US trade deficit with China was over $345 billion.
Meanwhile, a 2019 study found that permanent US tariffs of 25% on all Chinese imports would create more than a million US jobs in five years. American manufacturing is vital to the American economy because every manufacturing job supports 7.4 additional US jobs in other industries.
John Binder is a reporter for Breitbart News. Email him at firstname.lastname@example.org. Follow him on Twitter here.
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