By Andrea Shalal

WASHINGTON (Reuters] – Given the recent rise in consumer price, Jen Psaki from White House said that the Biden administration was carefully studying how tariffs imposed by Trump administration on China will affect inflation.

Psaki stated that she did not have any news regarding tariff cuts since U.S. Trade Rep Katherine Tai continues to review Trump’s tariffs on Chinese products. She made it clear, however that inflation had been a major factor in these deliberations.

Psaki stated that “This is an ongoing effort, and we’re definitely looking at where costs are being increased and at a moment where we’re experiencing heightened inflation,”

The review would also examine larger issues such as China’s behaviour in global markets, the effect of tariffs and wages on job opportunities, and America’s competitive advantage.

After U.S. Treasury Sec. Janet Yellen stated that it is worth considering taking steps to reduce U.S. tariffs for Chinese products due to the “desirable effect” this move could have on lowering U.S. inflation, which reached 40-year highs.

Daleep Singh (Deputy National Security Advisor) stated that the reduction of tariffs on non strategic Chinese goods, such as apparel and bicycles, could reduce inflation.

Biden’s approval ratings are declining as food, energy, and other staples costs rise. The mounting frustration of the public is likely to hurt Democrats’ small majority in Congress at midterms in November.

Chad Bown (a senior fellow at The Peterson Institute for International Economics) said Psaki’s comments exacerbated the expectation that the Biden Administration was looking into tariff reductions.

Bown stated that this would require negotiations behind the scenes with Beijing. This move could also lead to tensions as the Biden administration seeks to bring supply chains closer to China.

Tai’s Office did not respond immediately.