In an interview aired on NPR’s “Morning Edition” broadcast on Tuesday, U.S. Trade Representative Ambi Anne Amber said: In response to concerns that the Biden administration’s tariffs on China, including the suspension of tariffs from the Trump administration, will lead to inflation, Katherine Tai said, “The link between these tariffs and inflation is false.” “I’ve seen the research that comes out.” And by not relying on China, we can protect ourselves from the inflation caused by the supply problems of the past few years.
asked co-host Michel Martin. [relevant exchange begins around 4:15] “[T]The administration is reviewing tariffs imposed by the Trump administration. You’re keeping some of the tariffs on hundreds of billions of dollars worth of Chinese goods originally set by President Trump. What do you say to those who say that inflation is falling but remains high and that prices are rising at a time when Americans could use relief?”
Mr. Tai replied: “Well, I think we’ve seen studies that have proven that the link between these tariffs and inflation is false. More importantly, being able to invest in our industry means that we can build on the resiliency of our supply chains. It means we’re investing. We’re investing in manufacturing capacity, which protects us from inflationary price increases like we’ve seen in the past few years when supply was constrained and we couldn’t handle it.”
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