U.S. tariff review considers commodity shortages, inflation -official

[ad_1]

Article content

WASHINGTON — The Biden administration is weighing concerns about commodity shortages and inflation as it reviews trade tariff policy, the top White House economist said on Friday.

Strong demand for consumer goods and other products in a U.S. economy still scarred by the coronavirus pandemic have led to shortages in commodities from lumber to computer chips.

Asked whether tariff reduction would help solve shortages and inflation, Cecilia Rouse, chair of the White House Council of Economic Advisers, told reporters at a press briefing on Friday, “Our trade representatives are looking at all of these factors.” A spokesman for U.S. Trade Representative Katherine Tai did not respond to a request for comment.

See also  TikTok: Bill to ban TikTok on US government devices passes committee

Strong demand for commodities and the higher prices that have resulted are among the factors stoking fears of inflation.

The United States is the world’s largest importer of goods, at some $2.5 trillion in 2019, and any trimming of tariffs to alleviate shortages and high prices could have widespread repercussions. The United States currently levies average tariffs of 19.3% on imports from China and 3% on those from the rest of the world, according to the Peterson Institute for International Economics.

Article content

Import prices rose for a sixth straight month in April, lifting the year-on-year increase to 10.6%, the most since October 2011, Labor Department data showed on Friday.

Higher prices on cars, homes and computers, which eat away at incomes and could derail the economic recovery, have been one of President Joe Biden’s key concerns – along with controlling the pandemic – since he took office in January.

See also  Covid-19: Vaccine supplies to get a leg-up, says govt

Yet his administration has so far largely stuck with taxes imposed by the Trump administration that add to the cost of goods, including steel and aluminum, imported from abroad. So far, the White House has dismissed signs of inflation as fleeting.

Lawmakers from both political parties have pressed for relief from those tariffs, as have companies.

A bipartisan group of 40 U.S. senators asked https://www.portman.senate.gov/newsroom/press-releases/portman-carper-38-colleagues-urge-us-trade-representative-help-us Tai last month to start a process letting U.S. businesses get relief from tariffs on Chinese goods imposed by Trump.

See also  Israel, Hamas clash fuels communal fighting on city streets

Rouse suggested that larger considerations than inflation and the current economic recovery remain at play.

“Trade policy is a much bigger issue and that needs to be worked out in the context of our global partners and as part of having a really well-running and efficient global economy,” she said. (Reporting by Trevor Hunnicutt in Washington Editing by Heather Timmons and Matthew Lewis)

[ad_2]

Source link

Latest

The Most Effective Auto Repair Invoicing Software

The average car is made up of approximately 30,000 individual pieces. When you're running an auto repair shop

The 3 Core Aspects Of IT Infrastructure Management

Sound IT infrastructure management is essential in any business that makes use of networked computers. In fact, it’s important for pretty much any company...

Why buy cryptocurrencies? And the security of buying cryptocurrencies?

Cryptocurrencies undergo surprising valuations and work in the digital environment in a secure, independent, and decentralized way.

CCIE security and how to pass the exams

Nowadays, the world has revolutionized to a significant extent. There is a rapid increase in technical terms and technologies. Nowadays, it has become quite...

The Benefits Of A Retinal Eye Screening

Checking your eyesight is important for many reasons, not just for the sake of going to the eye doctor. Whether it's for a career...