Times are tough and inflation is rising. In the US, this has led for calls for President Joe Biden to lift or lower Trump-era tariffs on certain Chinese imports. The Treasury secretary, Janet Yellen, has said that some “reductions may be warranted”. But, as she and many other economists acknowledge, tariffs targeting a mere 3.6 per cent of the US economy are hardly a panacea for inflation. Indeed, the US-China tariffs distract from the real trade tug of war: global competitiveness in key industries.
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