US Treasury secretary Yellen: US Is Actively Considering Resetting Tariffs on China, But It Is Not a Panacea for Inflation

The Biden administration is actively considering "resetting" tariffs on Chinese goods, U.S. Treasury Secretary Yellen said Wednesday EST, but warned that tariff cuts are not a "panacea" for high inflation, according to foreign media reports.

The US government is actively considering resetting tariffs on China

Speaking at a hearing of the House Ways and Means Committee, Yellen said the Biden administration was looking at changes to the Section 301 tariffs on Chinese goods, as well as procedures to exempt some specific products from those tariffs.

She said more information on the tariff plan would be released in the coming weeks, adding that the changes were "under active consideration".

Yellen said, "I think some of the tariffs ...... end up being paid by Americans, and that hurts American consumers and businesses." She added that the Biden administration was looking to "reset these tariffs in a more strategic way".

Yellen's comments suggest that the debate over tariffs within the Biden administration is continuing.

US Treasury Secretary Yellen has been at odds with US Trade Representative Katherine Tai, who opposes "lifting the tariffs" on China, arguing that this would give her what she calls "leverage" in the ongoing US-China trade talks. On Monday, Katherine said that curbing inflation was a more complex issue than cutting tariffs.

In response to a question about tariffs, Yellen said:- "I want to make it clear that I really don't think tariff policy is a panacea for inflation...goods only account for about a third of consumption, and it's not clear exactly what the impact of tariff cuts will be on consumers."

Earlier on Wednesday EST, US Representative Stephanie Murphy, a Florida Democrat, has introduced a bill asking the US Treasury Department to lead a study on the impact of tariffs on inflation, including tariffs on Chinese goods, steel, aluminium, solar panels, washing machines and other goods.