Retailer association pressures Biden to eliminate Chinese tariffs
The NRF believes that eliminating tariffs would help ease inflation.
WASHINGTON – The National Retail Federation penned a letter to President Biden this week urging for a reduction or elimination of Chinese tariffs.
Stay In-Tune with the U.S. Furniture Industry
Get our exclusive Import/Export research report free when you sign up for our newsletter (over $200 value)
Free emails, delivered twice-daily plus breaking news alerts
“Consumers and businesses continue to
feel the pain of higher prices across the board from everyday goods and
services to rent and groceries and gas,” wrote NRF President Matthew
Shay. “Removing the harmful China 301 tariff will alleviate some of the
inflationary pressure on the U.S. economy.
Citing a study from the Peterson Institute, Shay wrote that providing tariff relief would reduce the Consumer Price Index by 1.3 percentage points and would go a long way in fighting inflation.
“The current surge in inflation is
caused by many factors, and it will require a careful balance of fiscal
and monetary policy solutions to bring it under control,” he wrote. “We
have noted the administration’s recent policy recommendations regarding
inflation, and we respectfully observe that one of the most effective
and meaningful tools — tariff relief — has not yet been put forward.
This is a missed opportunity. Inflation is likely to linger in the
economy for many months.”
Biden’s circle is divided on the issue. Treasury Secretary Janet Yellen told Reuters that Section 301 tariffs “pose more harm on consumers and businesses”
than they do on China and that they “aren’t very strategic in the sense
of addressing real issues.”
U.S. trade Representative Katherine Tai on the other hand is more staunch on leaving tariffs in place.
She has advocated for a broader trade strategy that looks to protect
U.S. jobs while looking at China’s behavior in global markets. She has
also said that if tariffs were to disappear, she would lose some power
at the negotiating table with China.
Inflation has risen as much as 8% over
the past year. Biden and his administration are under increasing
pressure to get prices down, especially as midterms approach.
A tariff review is currently underway, but it could take months. The USTR is accepting comments on continued tariffs online.
For responses related to the tariffs imposed in July 2018, the comment
period will open on May 7 and close at 11:59 p.m. on July 5. The window
for comments on tariffs imposed in August 2018 is June 24 until 11:59
p.m. on Aug. 22.
Retwittered by Gaozhan Home Furnishings