Former US ambassador says lifting China's tariffs could reduce inflation by 1% over time, helping Biden in the medium term

Uncategorized

Former US ambassador says lifting China’s tariffs could reduce inflation by 1% over time, helping Biden in the medium term

Posted by matino on June 21, 2022 — Drop A Comment

https://www.videosprofitnetwork.com/watch.xml?key=d78c831adb2ad9932deae63f25153250

Former US Ambassador David Edelman says lifting tariffs on imported Chinese goods will reduce inflation in the United States by 1% over time and restore confidence in the economy, which could help President Joe Biden in the ballot box. Is.

Edelman told CNBC’s “Squawk Box” on Monday that “inflation will be the number one issue in the US midterm elections in November.”

“While the president is limited in his ability to control inflation, he has an important tool in his toolbox,” said Edelman, who served as US ambassador to Singapore during the Obama administration.

“This has the potential to relieve the pressure on the US economy and US consumers due to the huge tariff rates that apply to Chinese imports over 37 370 billion annually.”

“Many economists are saying that over time, you can reduce CPI by a full 1%, which is very significant for US consumers,” he said, referring to the Consumer Price Index, a key measure of inflation. Quoting

While former President Donald Trump’s trade war with China was popular with American voters on both sides of the aisle in 2018, Edelman said the effort was economically futile and did not produce “meaningful” trade benefits.

“I think the evidence is good. Not only has it had a negative effect on the Chinese economy, but it has also had an impact on the US economy. It has boomeranged on the US economy,” said Adele Mann, managing director of Crane Shares. There are also, he said.

“Biden is beginning to realize that elections are taking place, that this is going to be the economy that is most important to the voters. If the president can do anything to ease the pressure, he has to do it. After all, a good economy must have good politics, “he said.