By Alessandra Galloni and David Lawder

WASHINGTON, (Reuters) – U.S. Treasury secretary Janet Yellen stated on Thursday that lowering Trump’s tariffs on imports from China by a revival of exclusion could ease inflationary pressures but not be a “game-changer.”

Yellen said at the Reuters Next conference, that tariffs up to 25% on billions of dollars of Chinese annual imports “do contribute” to rising prices in the United States.

She added that Trump’s tariffs created problems, without any strategic reason.

Previous product-specific exclusions from tariffs on Chinese goods had expired at the end of 2020, but U.S. Trade Representative Katherine Tai has launched a new, targeted tariff exclusion process https://www.reuters.com/article/usa-trade-china-tariffs-idTRNIKBN2GV2CQ as part of her engagement with Chinese officials on the “Phase 1” trade deal signed in early 2020.

Yellen cited as an example the exclusion procedure, and other measures where the Biden Administration is trying to alleviate price pressures. These include working with ports and private businesses to remove supply chain blocks and maintain product flow to consumers.

It is possible to lower tariffs through this process. “I think that this could be useful,” she stated about the tariff exclusion. This is not a game-changer. These are the things that we do to reduce these pressures.

Yellen stated that she doesn’t currently plan to visit China, but plans to keep in touch with Vice Premier Liu He on a variety of economic topics.

This includes China’s technological practices, the securities markets, and exchange rate practices. It also includes China’s attempts to rebalance their economy in favor of more personal consumption.

The latter could make “a significant contribution to mitigating the global imbalances,” she said. We’ve discussed these topics and I hope that the dialogues will continue.”

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