U.S. inflation has reached a record high since December 1981, and President Biden said dropping China tariffs could be an option to lower consumer prices.
Trump imposed tariffs on China’s imported products to punish China’s allegedly unfair trade practices. The policy protects domestic business but is about to expire this July. However, inflation has risen to 8.5% through March, which could lead to easing or removing the tariffs altogether.
National polling shows the rising cost of gas, rent, and groceries are a prime public concern.
President Biden blames the rising prices on the pandemic, especially China’s Zero-Covid strategy and the Russian-Ukraine war.
“I want every American to know that I am taking inflation very seriously,” Biden said. “The first cause of inflation is a once-in-a-century pandemic. Not only did it shut down our global economy, it threw supply chains and demand completely out of whack.”
He noted that he had made several nominations for the central bank’s board of governors and the solutions to cool inflation need to start with the Federal Reserve. In addition, his administration is under pressure to lower prices, and lifting trade tariffs to make imports cheaper was addressed.
According to Bloomberg, economists expect consumer prices to moderate to 6.9% on average this year before falling to 2.4% in 2024.