U.S. Treasury Secretary Janet Yellen said some tariffs on China inherited from the administration of former President Donald Trump made “no strategic sense” and added that President Joe Biden was reviewing them as a way to bring down inflation.
One instance of the Trump-imposed tariffs is a 10 percent tax that effected Sept. 1, 2019.
Tariffs are meant to protect the U.S. trade balance, but the volume of tea from China just doesn’t add up.
38 million pounds of black and green tea were imported from China in 2018 worth about $90 million.
American purchases account for less than 1 percent of Chinese production.
NewsOTG gathered from Derek Scissors that tariffs don’t work except in very narrow cases where he recommended targeting centrally controlled Chinese enterprises and imposing financial penalties.