May 21, 2024

We Need Tariffs to Protect ‘Stimulus’ from ‘Inflation Reduction Act’

Treasury Secretary Janet Yellen made a comment on President Joe Biden’s rumored plan to raise tariffs on China in an appointment with Bloomberg on Monday, blaming President Obama for protecting” the signal that’s being provided by the Inflation Reduction Act” to help some business.

The President believes that having a presence in strategic seçtors like semiconductors and clean electricity iȿ crưcial because they will form the foundation for good work and national security in the decades to come. He believes it’s undesirable, as I do, to be entirely dependent on China in these areas. And he wants to make sure that the President ensures that he protects these opportunities given that China is really not playing by the rules and that they have huge subsidies for advanced manufacturing [which have ] resulted in overcapacity. And while President Biden has made a promise, I do n’t want to get too far ahead of the 301 review on tariffs. And I concur. I recently traveled to China and declared that we would not help Chinese overcapacity to hurt our rapidly expanding companies.

Observe Ian Hanchett on Twitter @IanHanchett