The economy is still recovering from the COVID-19 epidemic, but recent inflation has created new worries for families and businesses across the country. Americans are under immense pressure due to rising prices. Legislators at all levels of government struggle to manage it.
Biden Administration proposes to make significant investments in social programs. This will, they say, allow businesses and workers to become more productive, ultimately helping to reduce inflation. While that argument’s long-term merits will be debated well into the next election cycle, the reality that Americans continue to face is steadily rising prices as lawmakers debate the details and timing of these legislative packages. Biden’s administration needs to find alternative ways to relieve the suffering of consumers and business owners.
A more immediate solution was also recently recognized by Senator John Boozman, R-AR, who is currently the ranking member of the Senate Agriculture Committee. This is what business leaders from across the country have been demanding for the past few years: the lifting of harmful tariffs on China imports.
The tariffs were originally imposed by President Trump to punish China for numerous trade violations. They have proved to be a huge burden on businesses, producers, farmers and all other sectors. The tariffs, which are not paid by China to the U.S. government, are the taxes U.S. Importers pay in order to buy the products they require to operate their businesses. The cost of operating in the U.S. has increased as a result.
As businesses try to repair the damage caused by the COVID-19 epidemic and ongoing supply chain crises, these costs only get worse. Businesses are still in turmoil and, now that they are at their most vulnerable, are being forced to pay tariffs for the items they require to stay open.
Biden’s leaders have indicated that they are aware of the potential benefits to inflation from lifting these tariffs. Janet Yellen, Treasury Secretary, has spoken on two occasions about how tariffs can raise prices for consumers and businesses. She acknowledged that some relief could be possible by lifting those tariffs.
U.S. trade representative Katherine Tai, President Joe Biden, should also do so to end the current trade dispute that while good intentions, has had a negative impact on American families, workers and consumers. It is possible to lift tariffs, without having the Capitol Hill fights. This action would provide an immediate boost to struggling businesses — that the vast spending packages still being debated in Washington haven’t. It would be smart for the administration to take action now.
U.S. companies are facing enormous economic pressure due to inflation, supply chain crises and tariffs. Biden’s administration needs to realize they have no other choice than to end tariffs. They must also eliminate a problem that has plagued the U.S. economic system since 2018. This policy is sensible and essential for the American economy.
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