US to suffer more from high tariffs

Nearly three dozen of the US’ most influential business groups, representing retailers, chip makers, farmers and others, asked the Biden administration to restart trade talks with China and cut tariffs on imports on Thursday, saying the tariffs are a drag on the US economy. They raised the appeal in a letter to US Trade Representative Katherine Tai and Treasury Secretary Janet Yellen. This is the clearest collective voice of the US business community on hoping to restore normal US-China trade since the Biden administration took office. Over the past six months, the Biden administration has been delaying making statement on US trade policy with China under the excuse of making relevant reviews. But it has retained all his predecessor’s China tariffs. There are even extra moves to crack down on Chinese companies. Piling pressure on Xinjiang-related trade issues have been quite prominent. In general, the US administration’s current trade policy toward China is highly “Trumpized.” However, the trade war over the past three years failed to fix problems as how the Trump administration wished. Moreover, it has harmed American companies and consumers. Such awareness is becoming more and more common in the US. After a brief decline, China-US trade showed a tendency of a comprehensive recovery, and the US trade deficit further expanded. In the end, the US gets nothing in terms of bringing manufacturing back to the country. The Biden administration is now stuck in a predicament. Normally, the US business community has a strong influence on government policies. When they collectively express their aversion toward tariffs, it is supposed to create immense pressure. However, when it comes to China-related issues, the US public opinion environment has been severely poisoned. Playing tough toward China has become “politically correct” in the US. Since the midterm elections are approaching, Biden’s team is likely to believe that maintaining tariffs is a better way to win votes than removing them. It remains to be seen how much practical influence this appeal from the US business community can bring. It is believed that US politics are now frozen. Any expectation for rationally righting the wrong does not make sense any more. Fortunately, the US is a diverse society with large policy gaps. It is difficult to block demands in the mark, which enabled China-US trade to rebound significantly against the odds of tariff pressure. Given such a reality in the US, China should continue developing substantial ties with US enterprises, keep participating in the construction of Americans’ lives. The Biden administration dares not reduce the tariffs imposed on Chinese products, but there is relatively large room to strive for tariff exemptions for certain Chinese goods. Yellen has expressed that tariffs on China are hurting American consumers.
–The Daily Mail-Global Times News Exchange Item