Biden Pushes Deal to Enrich Communist China, Offer Tax Exemptions on Chinese Products
The move would further enrich corporations who offshore to China
Joe Biden is considering giving Communist China tariff exemptions for over 500 of its products.
The move would further enrich corporations who offshore to China.
United States Trade Representative (USTR) Katherine Tai said the Biden administration would continue to preserve tariffs on Chinese products imposed by former President Donald Trump.
Tai added that the administration started a "targeted tariff exclusion process" to review whether 500 Chinese-made products could be excluded.
But above all else, we must defend – to the hilt – our economic interests.— Ambassador Katherine Tai (@AmbassadorTai) October 4, 2021
That means taking all steps necessary to protect ourselves against the waves of damage inflicted over the years through unfair competition.
Tariff exclusions for some corporations expired at the beginning of this year after the Trump administration issued a number of exemptions.
The products included the Apple Watch and thousands of other China-made products.
An announcement from the USTR office states:
"The focus of the evaluation will be whether, despite the first imposition of these additional duties in September 2018, the particular product remains available only from China."
In addition, USTR will consider whether reinstating the exclusion or not reinstating the exclusion will impact or result in severe economic harm to the commenter or other U.S. interests, including the impact on small businesses, employment, manufacturing output, and critical supply chains in the United States, as well as the overall impact of the exclusions on the goal of obtaining the elimination of China's acts, policies, and practices covered in the Section 301 investigation. [Emphasis added]
The comment period for the tariff exemptions will last into early December.
Former USTR Robert Lighthizer outlined in an op-ed for the Economist that a series of innovative trade actions would "achieve greater balance" with the U.S. billion-dollar trade deficits.
"A third approach … would be for the United States or any country that experiences the emergence of a huge, regular trade deficit to impose a temporary tariff on all imports and gradually increase it or decrease it depending on the level of the deficit."
For example, a 10% tariff could be applied to all imports. If the deficit did not go down in a couple of years, the tariff would be increased to 20% for several more years. If this did not have the needed effect, it might go up to 30%.
(Of course, the programme would make exceptions for critical goods.) When the deficit was substantially reduced, the tariffs would also decline and eventually be eliminated. [Emphasis added]
Free trade with China killed off at least 3.4 million American jobs since 2001.