U.S. Treasury Secretary Janet Yellen has said in an interview with Bloomberg TV that there is a possibility that the U.S. may reduce tariffs on Chinese imports as it strives to counter inflation.

As the news outlet reported on April 22, the Treasury chief said, “It’s worth considering. We certainly want to do what we can to address inflation, and there would be some desirable effects. It’s something we’re looking at.”

Yellen reminded that the U.S. has been releasing oil from the Strategic Petroleum Reserve at a historic record to lower oil prices. There have also been measures to tackle the supply chain woes.

According to the US-China tariff chart compiled by the Peterson Institute for International Economics, the average tariff rate on Chinese exports to the U.S. remains at 19.3% from February 2020 to the present. This is more than 6 times higher than before the trade war began in 2018.

However, the South China Morning Post reported that a poll result has shown that a majority of U.S. manufacturers favored tariffs and other actions against China.
The poll was conducted by the Washington-based group that supports U.S. manufacturers, called the Coalition for a Prosperous America.

Michael Stumo, CEO of the Coalition for a Prosperous America said, “Voters overwhelmingly support strong tariffs on China and want Congress to strengthen our trade laws – not weaken them – especially as China is enabling Russian war-making in Ukraine.”

Daleep Singh, Deputy National Security Adviser, on April 21 also suggested that the White House may alleviate levies on some non-strategic Chinese goods like bicycles or clothing.

Singh explained that these tariffs had no strategic purpose, unlike those others that can create negotiating power. China has also enacted non-strategic retaliatory tariffs.

He added that lowering tariffs and concentrating on more strategic areas, such as critical technologies, could be a good approach.

As the Wall Street Journal reported, inflation in the U.S. shot up to 8.5% in March. This issue is currently critical to the Biden administration.

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