President of the United States Joe Biden Studying the possibility of raising some customs duties imposed on Chinese goods during the era of the former president Donald Trump As the country grapples with inflation.
what happened
According to economists in the Biden administration, the tariff cut – currently under consideration by the US president – would reduce the overall inflation rate by about a quarter of a percentage point, according to the mentioned Tuesday from the New York Times.
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Officials are considering at least partial tariff relief, which could have side effects such as companies keeping their supply chains in China rather than moving them to the United States, which Biden said is a priority.
The decision could lead to political attacks on Biden and his Democratic allies in Congress, which would demonstrate their weakness toward China as the United States prepares for the upcoming midterm and presidential elections, according to the report.
Read also: Experts commented on super inflation in May
Because it’s important
According to the report, the United States imposed tariffs of 25% on nearly $160 billion in Chinese products and 7.5% on another $105 billion in consumer goods.
As it turns out, China was not going to fulfill its obligations under the US-China trade agreement negotiated by Trump, such as buying large quantities of natural gas and the planes it produces. Boeing Company (NYSE: BA).
In May, the Consumer Price Index (CPI) was up 1% MoM on a seasonally adjusted basis, well above the consensus estimate of +0.7%; In the last 12 months CPI by 8.6% Total adjustments against a consensus estimate of +8.2%.
Anti-inflation is basically the prerogative of Federal Reservethat’s Wednesday Interest rates should be raised 0.75%.
MondaySPDR S&P 500 ETF Trust(NYSE: SPY) entered bearish territory as markets reacted to an impending increase in interest rates.
price action
The SPDR S&P 500 ETF Trust closed the regular session Tuesday 0.3% lower at $373.92, and after the market was up 0.5%. Benzinga Pro data.
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