President Joe Biden's lifting of tariffs imposed under the Trump administration would not ease inflation in the United States and could mean harmful effects for American companies, author Gordon Chang warned Newsmax.
Speaking on "The Record with Greta Van Susteren" on Wednesday, Chang said, "Removal of tariffs isn't going to affect inflation in the U.S. because sellers don't drop their prices when their costs go down; they only drop their prices when the demand for their products goes down. So Biden would not be accomplishing what he's been talking about in public, which is easing inflation."
Chang added that the tariffs, which were originally put in place to protect American intellectual property, have not succeeded in that effort. And in fact, China's theft of American intellectual property has accelerated since then. "But they should nonetheless," Chang added, "be kept in place because there are consequences for taking them off, and those consequences would really hurt U.S. workers and U.S. manufacturing."
What the tariffs have done, Chang noted, is impose a cost on the Chinese government, which has forced the state-run government, at the time of the tariffs' issuing, to subsidize Chinese manufacturers, "which really means if Biden were to remove these tariffs, he'd be actually giving a subsidy to the Chinese central government, which is not really what Biden wants to do."
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