President Joe Biden might announce a reversal of certain US tariffs on Chinese consumer products as soon as this week, as well as a fresh investigation into industry subsidies that could lead to further penalties in crucial industries like technology.
According to sources involved with the considerations who requested not to be named because they were discussing private talks, Biden has not yet made a final choice, and the date might slip.
It would be his first significant policy move on trade relations between the world’s two most powerful economies. According to the sources, the president has met with top economic advisors in recent weeks to consider alternatives for a decision on Trump-era tariffs.
Hints that the Biden administration is contemplating lowering some of the duties on $300 billion in Chinese imports have grown as inflation has surged, putting pressure on US authorities to find measures to reduce consumer costs for ordinary goods.
Last month, Biden said that he would meet with Chinese President Xi Jinping “soon,” and that he is “in the process” of deciding whether to reduce tariffs.
Some members of Biden’s Cabinet proposed that he use the planned discussion with Xi to request reciprocal tariff reduction on American commodities now subject to import taxes, but that suggestion was soon dismissed, according to the sources.
According to a White House official, no decision on tariffs has been taken, but the government wants to ensure they are consistent with “economic and strategic” interests and do not increase expenses for Americans needlessly.
According to the Wall Street Journal, a decision might be made as soon as this week.
The Biden administration said in May that it was beginning the process of reviewing the tariffs, which were set to expire in July. Industries that profited from tariffs imposed by former President Donald Trump have until July 6 to respond and request that the penalties be extended.