The Biden Administration is considering reducing the tariffs on China so it can appear to be taking action on inflation, even though studies show it will have little to no effect.
Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo are pushing President Biden to reduce tariffs on China to put more money back into the pockets of the average American. Even Yellen, however, has said that the reduction is not a viable long-term solution.
The Biden administration has pumped trillions of dollars into the economy in the form of pandemic relief. With the money supply increasing so rapidly, economics 101 tells us that inflation was inevitable. Yellen recently admitted that she was wrong about inflation, but attributed it to factors outside of her control, like the pandemic, the invasion of Ukraine and the lockdowns in China.
If the administration cuts tariffs for optics rather than for trying to deploy a viable solution to the problem, it would not be the first time. President Biden has repeatedly released oil from the strategic oil reserve, which he has touted as a sound policy to combat the rising cost of gas at the pump. Although it sounds good, it has had little to no impact.
The United States consumes approximately 20 million barrels of oil a day. The most recent release of 40 million barrels will account for only two days of consumption. The move was for political purposes, not actual change.
According to government statistics, inflation recently reached a 40-year high of 8.6% — and the actual number is likely higher than that — with no sign of going back down. Inflation is also ranked as the number one concern for voters across all demographics, with 70% of voters saying it is the number one problem facing households today.
President Biden and Democrats are desperate to appear as if they are tackling the problem, even though it is a problem of their own making. But Americans don’t seem fooled, with Biden’s poll numbers recently hitting all-time lows.