Here’s How Biden Can Offset His Trade War With China
Higher tariffs on Chinese imports won’t help reduce inflation, but allowing more Canadian lumber into the US would help the housing market.
The US could use more of that.
Photographer: James MacDonald/Bloomberg
For a guy who says that fighting inflation is “my top economic priority,” President Joe Biden has an odd way of showing it. Last week he sharply raised tariffs on Chinese-made steel, semiconductors and electric vehicles — to an eye-watering 25%, 50% and 100%, respectively — which will have the effect of making prices and interest rates higher.
As pure politics, this mostly goes to show that it can be hard to be an incumbent. The perception that inflation is too high tends to benefit Donald Trump, who can also appeal to swing voters in states like Pennsylvania and Michigan with promises of more protectionism. Biden has to actually do things, so if he wants to pander to some constituencies, he has to risk offending others.