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Import tariffs ‘inevitably’ making US inflation worse, China commentary says, as consumers and firms continue to foot the bill


“The United States’ pursuit of anti-globalization, separatism and separation has led to a mismatch of global resources, as well as supply and demand, which will inevitably impose more restrictions on the decline of the global economy.” [US] “Domestic inflation,” the National Development and Reform Commission (NDRC) said in a commentary posted on its WeChat account on Monday, in its latest criticism of Washington’s trade policies.

“This is not only a new problem facing the US economy, but also a threat facing the global economy,” according to the commentary written by Jin Xuan.

Import tariffs ‘inevitably’ making US inflation worse, China commentary says, as consumers and firms continue to foot the bill

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The United States is proposing a new round of tariffs on China in the latest escalation of the trade war

The United States is proposing a new round of tariffs on China in the latest escalation of the trade war

The official role of the author has not been revealed by the chief economic planner, although Jin Xuan is often seen as a pseudonym used to communicate official messages.

Jin also wrote two separate comments in response to criticism from the United States and Europe over problems surrounding China’s industrial policy, including spare capacity and electric vehicle exports, on April 30 and May 1.

Beijing has recently addressed concerns about excess capacity from the United States and the European Union, which worry that cheap imports are hurting domestic manufacturing sectors.

The commentary appeared for the first part of a series titled “Maintaining Economic Globalization and Promoting the Comprehensive Development of the World Economy.”

Monday’s commentary said that “cheap, good quality” products made in China and other developing countries have helped lower inflation and import costs for the US economy for many years, and also meet the needs of the majority of US businesses and consumers. .

The commentary added that in recent years, the US government has raised tariffs on imports ranging from steel, machinery and equipment, chemicals and plastics as well as new energy vehicles and solar panels.

Even daily necessities such as food, clothing and medicine were subject to higher tariffs, the commentary said.

Before last week, the Biden administration kept in place punitive Trump-era import tariffs on Chinese goods despite some calls to remove them because they increase production costs for American companies.

The commentary appears to be the first in a series titled “Maintaining Economic Globalization and Promoting the Comprehensive Development of the World Economy.”

“In April this year, consumer price inflation in the United States rose by 0.3 percent month-on-month and 3.4 percent year-on-year, still above the 2 percent target,” the National Development and Reform Commission’s commentary said.

“This is due to the impact of the epidemic, excessive fiscal and monetary policy stimulus, and rising prices of imported goods and services due to the United States’ anti-globalization promotion.”

These costs are ultimately paid by American businesses and consumers

National Development and Reform Commission

But despite its significant progress last year, the US central bank’s battle with inflation has faced a setback this year, with consumer price rises accelerating again in the first quarter.

“Relevant US financial and economic officials stated that the tariffs increased direct costs to US consumers, increased the cost of importing goods into the United States, and contributed to higher inflation,” the NDRC commentary said.

“These costs are ultimately paid by American businesses and consumers.”



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