CNBC’s former Treasury Secretary Jacob Lew stated Tuesday that eliminating tariffs on products during the worst trade war would ease inflation.

He said that there is currently no political space to do this, as he stated on CNBC’s Street Signs Asia.

I believe that there are deep differences between the United States of America and China. It shouldn’t be about exchanging goods or services on either side. Lew stated that it should not be about level playing fields.

He said, “I have believed from the beginning that tariffs are an ineffective method to address their attacks against American consumers.” With inflation so high, it is clear that removing tariffs will actually lower inflation in the United States.

The 2018 trade war between Beijing and Washington erupted when both countries imposed tariffs upon billions worth of Chinese goods. Beijing countered with the same punitive measures.

U.S. tariffs on Chinese goods stood at an average of 19.3% on a trade-weighted basis in early 2021According to a report, the Chinese tariffs on American goods were around 20.7%. data compiled by think tank Peterson Institute for International EconomicsThis year, earlier.

According to data, U.S. tariffs for Chinese goods in 2018 were 3.1%, while China’s tariffs for American goods averaged 8%.

Lew stated that, in relation to the repeal of tariffs: “Both leaders must, I believe, create political room in our countries for these topics to be issues whereby you can move forward and make progress. Otherwise, we will either remain where we are.” Even worse. We can do better, I believe.”

American businesses bear the brunt of the increased tariffs imposed by the U.S. at the peak of its U.S. China trade war. according to a report from Moody’s Investors ServiceThis year, earlier.

According to the ratings agency, U.S. importers were responsible for more than 90% of extra costs due to U.S. tariffs on Chinese products. According to the report, this means that U.S. exporters get 1.5% less per product if the Chinese tariff rate is 20%.