Tariffs

The Biden administration is toying with the idea of removing or reducing the Trump tariffs in order to reduce our raging inflation.

Pilgrim, your humble  blogger is vehemently opposed to this … particularly for those on China … for three reasons:

1) This would be rewarding China for bad behavior. China has not come close to meeting its Phase One trade agreement signed under Trump.

2) Have we learned nothing? China has had to reduce its transfer prices to offset many of these Trump tariffs. That is why inflation did not occur during his years. It seems quite likely that, if Trump’s tarrifs were removed from China, it would promptly raise the transfer prices on these products to recapture most or all of these s tariffs. Inflation in the U.S. would not be benefitted one iota.

3) Don’t forget Pilgrim that Xi Jinping rewarded Trump’s attempt at trade fairness with the Wuhan pandemic gift.

Since elimating tariffs on China would be a huge mistake, we can be sure Biden will do it.

STAND UP TO CHINA!