U.S Trade Representative Katherine Tai said that reducing the U.S tariffs on imported goods from China in one of many options that could be considered to assist in reducing inflation which had increased at a 41-year high of 8.5% between March 2021 – March 2022.
Tai has cautioned that the U.S administration does not want to make decisions fighting inflation that may damage trade relations with China in the long run. The Wall Street Journal reported that Treasury Secretary Jenet Yellen and Commerce Gina Raimondo favour rolling back tariffs, while Tai and others are weary that by rolling tariffs back, the U.S may lose leverage over China in their initiative aimed at reforming China’s economic behaviour.
Tai’s office announced that it’s commencing a mandated review of the first group of tariffs on China-made goods, which could involve an analysis if they should keep the levies as they are, reduce them or remove them. The majority of promo products sold in the $23.2 billion North American industry are produced in China. Current tariffs on promo imports, including apparel and hard goods have contributed to price increases on industry-sold products in recent years.
According to data from the U.S. Census, total U.S. imports from China reached $538.51 billion in 2018. The figure dropped to $450.76 billion in 2019 and fell further again in 2020 to $434.75 billion. Despite tariffs and supply chain disruption, U.S. imports from China rose in 2021, reaching $456.83 billion. If the tariffs change, a reduction may also help in lowering promotional product costs in Canada.
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