US media: Biden’s new tariffs on China may end the era of cheap goods

The United States last week announced new tariffs on $18 billion worth of Chinese imports, covering electric vehicles, lithium batteries, photovoltaic cells and other products. The media believed that this was a political move by the Biden administration to gain votes before the election. However, some U.S. economists and industry insiders worry that the cost of these tariffs will ultimately be borne by U.S. consumers.

The United States last week announced new tariffs on $18 billion worth of Chinese imports, covering electric vehicles, lithium batteries, photovoltaic cells and other commodities. The media believed this was a political move by the Biden administration to gain votes before the election.
But some U.S. economists and industry insiders worry that the cost of these tariffs will ultimately be borne by U.S. consumers.
According to a report in the New York Times, Biden’s tariffs on China represent the end of the era of cheap Chinese goods.
Although Biden claimed that this move was to \”protect strategic manufacturing industries from low-cost competition\” and thereby increase employment.
Yet U.S. consumers may not like the price they pay.
The New York Times said that Biden and Trump have made \”different but overlapping\” efforts on the issue of tariffs – trying to revive and protect American factories by raising the cost for American consumers to buy Chinese goods.
The report article stated that it is unclear what kind of new era of policy-making these \”political incentives\” will usher in. It is also unclear whether the American public is still troubled by the country\’s fastest inflation in 40 years or whether it can tolerate the changes that may accompany the transition. labor pains.
MIT economist David Autor said that the old consensus on U.S.-China trade has been broken and a new consensus has not yet been formed.
He and other economists found that although Trump\’s tariff-centric approach did not succeed in bringing many jobs back to the United States, the policies appeared to win more votes for Trump and the Republican Party.
Some economists who support reducing trade restrictions with China have criticized Biden and Trump\’s plans, saying they would not only raise costs for American consumers but could also slow U.S. economic growth.
These economists argue that cutting off competition from China would force U.S. businesses and consumers to spend money on artificially expensive goods rather than on innovative products that create new industries and jobs.
The article quoted poll results saying that American voters are already extremely dissatisfied with rising prices. Concerns about inflation are affecting Biden\’s re-election chances, but if Trump returns to the White House, continued price increases caused by new tariffs may also damage his approval rating.
The article reads: “These political issues have brought uncertainty to the final direction of China policy in the new era.
Eswar Prasad, a senior fellow at the Brookings Institution, recently said that Biden\’s tariffs \”are the pinnacle of the industrial policy conflict between the two countries and the result of the upcoming election season in the United States.\”
Prasad admitted that Biden\’s new tariffs increase the risk of China\’s \”retaliation\” and may ultimately drag down the growth of the US economy.
Relations could also suffer if Republicans and Democrats continue to take a confrontational stance toward China in order to win elections.

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