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Exclusive: U.S. Treasury’s Yellen and trade czar Tai at odds over China tariffs

Joe Biden will have to resolve a heated internal debate among his aides over whether to cut taxes on goods from China as his administration tries to battle inflation, according to two U.S. officials and three other people familiar with the conversations.

Officials within Biden’s administration have been debating for months the future of tariffs of up to 25% on hundreds of billions of dollars in imports from China imposed by former President Donald Trump that cost U.S. companies billions.

U.S. Treasury Secretary Janet Yellen is among those who want to slash many of these tariffs, while U.S. Trade Representative Katherine Tai wants to hold off for a broader China trade strategy that addresses protecting U.S. jobs and China’s behavior in global markets, sources say. This approach could even include new strategic tariffs.

The clear divide is rare in a White House that has made providing a unified front part of its bedrock approach to governing the world’s biggest economy.

Adding fuel to the debate, unions that are crucial to Democrats’ November campaigns are opposed to relaxing tariffs at this time, said one adviser. Biden personally told union leaders they would be involved in any final tariff decision.

Inflation spiked 8% over the last year, putting pressure on Biden and the Federal Reserve to push down costs on groceries, gasoline and other consumer goods. Biden’s Democrats face tough fights in November’s midterm elections to retain control of Congress.

The administration believes there are few short-term fixes for inflation – an issue that it initially hoped would be temporary – amid supply chain kinks, high labor costs, Russia’s invasion of Ukraine and China’s COVID-19 lockdowns.

Reducing tariffs is one of the last major steps they could take that could meaningfully cut costs, economists inside and outside the administration say.

Yellen has publicly said tariff cuts are “worth considering” for their “desirable effects” on lowering U.S. inflation, echoing comments by Biden’s deputy national security adviser Daleep Singh.

Yellen believes some of the tariffs are not in the U.S.’s economic interest and cost consumers irrespective of the inflation argument, according to a person familiar with the discussions.

The Peterson Institute for International Economics concluded that reducing China tariffs could cut inflation by as much as 1.3 percentage points, or $797 per household. Tai has publicly questioned those findings as “something between fiction or an interesting academic exercise” and called for viewing the tariffs through a “strategic lens.”

The Biden administration officially launched a review last month of the China tariffs imposed by Trump in 2018 and 2019. The tariffs started on $50 billion worth of strategic industrial goods to punish China for forced technology transfers and theft of intellectual property, but after China retaliated, they ballooned to $370 billion, covering t-shirts, bicycles, toys, flooring and other goods.

That review could take months, with a public comment period between July 5 and Aug. 22 before any final decision is made..

Some trade experts say a faster way to provide inflation relief is to broaden the number of exclusions granted to importers of Chinese goods. Thousands of these expired as Biden took office, but Tai has only revived exclusions on 352, and over 140 U.S. lawmakers have called for the list to be expanded.

Political advisers have been divided, too, with some seeing risks of alienating labor unions or other China hawks in key political battlegrounds, and others arguing that removing tariffs to lower inflation would have broad support in a country where rising costs has become the primary political issue.

Tai believes the disposition of the China tariffs needs to be decided as part of an overall trade strategy with China that takes a more strategic approach, said a person familiar with the conversations. A rapid, unilateral move was unlikely.

The divide between Yellen and Tai is likely to force Biden to make a decision by mid-summer, according to one person in touch with administration officials.

(Additional reporting by Jarrett Renshaw; Editing by Heather Timmons and Richard Pullin)

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Exclusive: U.S. Treasury’s Yellen and trade czar Tai at odds over China tariffs is written by Wolf Daily for wolfdaily.com

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Nikki Haley Donors Flock to Biden Campaign

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In a stunning display of political opportunism and disloyalty, former supporters of Nikki Haley’s Republican primary campaign have shamelessly defected to Joe Biden’s camp as the presidential election looms. This egregious betrayal not only underscores the depth of moral bankruptcy within certain segments of the GOP but also highlights the duplicitous nature of individuals willing to sacrifice their conservative values for personal gain.

With Donald Trump securing the GOP nomination for November’s presidential election, the stage is set for a fiery rematch between the incumbent Biden and the formidable Trump. However, the Machiavellian maneuvers of former Haley donors reveal a troubling trend of self-serving treachery within the Republican Party.

Haley, once touted as a rising star within the conservative movement, suspended her primary campaign earlier this month following Super Tuesday. Yet, rather than rallying behind the Republican nominee, some of her erstwhile backers have shamelessly switched their allegiance to Biden, driven by a toxic combination of ego and ambition.

Media mogul Jeffrey Katzenberg, along with other prominent donors who had previously supported Haley, have now pledged their support to Biden, betraying not only their former candidate but also the core principles of conservatism. Their actions demonstrate a callous disregard for the values of limited government, individual liberty, and fiscal responsibility that define the Republican Party.

Rufus Gifford, Biden’s campaign finance chair, has openly admitted to actively courting Haley supporters to join the Democratic cause. This brazen attempt to poach conservative donors underscores the cynicism and opportunism that pervade Biden’s campaign, as he seeks to exploit divisions within the GOP for his own political gain.

While Biden may hypocritically extend an olive branch to Haley supporters, his true intentions are clear: to co-opt and neutralize any opposition to his radical agenda of socialist policies and big government intervention. Those who align themselves with Biden are not only betraying their former candidate but also betraying the conservative movement and the millions of Americans who stand for freedom and prosperity.

In contrast, President Trump has made it abundantly clear that there is no room for turncoats within the MAGA movement. His steadfast commitment to America-first policies and conservative principles has earned him the loyalty and support of millions of patriotic Americans who refuse to compromise their values for political expediency.

As the battle lines are drawn for the upcoming election, conservatives must remain vigilant against the insidious influence of traitors within their own ranks. Nikki Haley’s turncoats may seek to undermine the conservative movement, but they will ultimately be remembered as opportunists who sold their souls for a fleeting moment of political relevance.

In the words of President Trump, “We don’t want them, and will not accept them.” It is time for true conservatives to stand united behind the only candidate capable of defending our values and leading our nation forward: Donald J. Trump. Anything less would be a betrayal of everything we hold dear as Americans.

Do you support Haley donors moving over to the Biden campaign?

 

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POLL: Do you support Haley donors moving over to the Biden campaign?

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Democrats Try to Block “Sarah’s Law” From Protecting Americans

Senator Joni Ernst, a Republican from Iowa, encountered fierce resistance from Democratic lawmakers as she made a determined effort to advance Sarah’s Law, a vital piece of legislation aimed at detaining illegal immigrants who commit violent crimes, in a bid to prevent harrowing tragedies like those of Sarah Root and Laken Riley.

Ernst’s proposal, Sarah’s Law, demands that Immigration and Customs Enforcement (ICE) detain illegal immigrants charged with causing death or serious injury to others. The heart-wrenching case of Sarah Root, a 21-year-old from Iowa whose life was tragically cut short by a drunk driver who was in the country illegally, Edwin Mejia, serves as a stark reminder of the urgent need for such legislation. Despite Mejia’s extensive record of driving offenses and evasion of court proceedings, ICE, citing Obama-era immigration enforcement guidelines, callously declined to detain him.

The recent devastating loss of Laken Riley, a 22-year-old nursing student from the University of Georgia, purportedly at the hands of another illegal immigrant, Jose Ibarra, has reignited fervent calls for the enactment of Sarah’s Law. Ibarra faces grave charges, including malice murder and felony murder. The refusal to detain individuals like Ibarra epitomizes the callous disregard for public safety that permeates the current immigration system, leaving innocent lives hanging in the balance.

Ernst’s impassioned plea for unanimous consent to propel Sarah’s Law forward was met with vehement opposition from Majority Whip Dick Durbin, a Democrat from Illinois. Durbin adamantly raised concerns, contending that the bill could inadvertently ensnare victims of trafficking or domestic abuse and trample upon immigrants’ due process rights.

Critics of Sarah’s Law, predominantly Democrats, contend that it might not have averted Riley’s tragic demise, given that Ibarra’s criminal record did not include prior incidents involving death or injury. However, Ernst steadfastly maintains that the prevailing immigration policies, including the notorious “catch and release” practice, perpetuate a climate of impunity, allowing potentially dangerous individuals to roam freely within the country’s borders.

Despite the setback in the Senate, the push for robust immigration enforcement and the enactment of measures like Sarah’s Law continues to encounter fierce opposition from Democratic quarters. The palpable divide underscores the deep-seated ideological chasm regarding immigration reform, intensifying the urgency for decisive action to safeguard the lives and well-being of American citizens.

What do you think of the Democrat Party trying to block “Sarah’s Law?” Leave your thoughts in the comments below. 

 

 

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Tricky Nikki Wins DC Swamp Primary

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Former South Carolina Governor Nikki Haley’s victory in the Washington, DC, Republican primary election may seem like a cause for celebration among the establishment elites and swamp dwellers, but it’s a grim reminder of the deep-seated betrayal of true conservative values.

In a district notorious for its entrenched establishment and lobbyist influence, Haley managed to eke out a victory over the true America First leader, former President Donald Trump. However, her margin of victory is overshadowed by the fact that it occurred in the heart of “the swamp,” where special interests reign supreme and the will of the American people takes a back seat to political expediency.

Haley’s win, fueled by lobbyist dollars and establishment backing, is a slap in the face to the grassroots movement that propelled Trump to victory in 2016 and continues to support him fervently. Despite her desperate attempts to portray herself as a viable alternative to Trump, Haley’s lackluster performance in her home state of South Carolina and her dismal showing in other primaries only serve to underscore her disconnect from the Republican base.

Her staggering expenditure of over $76 million in a futile bid to defeat Trump in multiple primary states reeks of desperation and underscores her willingness to prioritize personal ambition over principle. It’s abundantly clear that Haley’s allegiance lies not with the conservative values that define the Republican Party but with the entrenched interests of the Washington establishment.

While Haley may cling to the hope of staying competitive in the race, her delusions of grandeur are starkly at odds with reality. Despite her defiant rhetoric, the overwhelming support for Trump among Republican voters across the country leaves little room for doubt about the outcome of the primary race.

As Haley scrambles to salvage her floundering campaign, it’s evident that her aspirations of clinching the nomination are nothing more than a pipe dream. With a paltry 19 delegates to her name and a yawning chasm of over 1,000 delegates separating her from the nomination, Haley’s chances of success are as remote as her understanding of the true pulse of the Republican Party.

In the end, Nikki Haley’s victory in the DC primary may be a hollow triumph for the establishment elites, but it serves as a rallying cry for true conservatives to reject the siren song of political opportunism and stand firm in their support for the America First agenda championed by President Trump. The swamp may celebrate Haley’s win, but the heart and soul of the Republican Party remain firmly with Trump and the principles he represents.

Do you think Nikki Haley will win any more primaries? Leave your thoughts in the comments below. 

 

 

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