Business lobby urges Biden to mend ties with China

Nearly three dozen of the United States’ most influential business groups have asked President Joe Biden’s administration to restart trade talks with China and cut tariffs on imports.

The group, representing retailers, chip makers, farmers, and others—have urged Biden to restart negotiations with China and cut import duties, saying they are a drag on the U.S. economy

In a letter to U.S. Trade Representative Katherine Tai and Treasury Secretary Janet Yellen on Thursday, the business groups said that China had met “important benchmarks and commitments” in the agreement, the report added, including opening markets to U.S. financial institutions and reducing some regulatory barriers to U.S. agricultural exports to China.

The tariffs on electronics, apparel, and other Chinese goods, which are paid by U.S. importers, were kept in place in part to ensure that China fulfills its obligations under its 2020 Phase One trade pact with the U.S.

“A worker-centered trade agenda should account for the costs that U.S. and Chinese tariffs impose on Americans here and at home and remove tariffs that harm U.S. interests,” the report quoted the letter as saying.

The U.S. trade representative’s office and Treasury spokesman didn’t respond to requests for comments immediately.

Meanwhile, Sen. Joe Manchin, D-W.Va., has said that he is “deeply concerned” about the Federal Reserve’s continued efforts to support the U.S. economy and urged the central bank to taper its emergency stimulus efforts.

Manchin said he is worried that further stimulus from the Fed, combined with trillions in Democratic-led spending, “will lead to our economy overheating and to unavoidable inflation taxes that hard-working Americans cannot afford.”

In a hard-hitting letter to Fed Chairman Powell, he wrote, “With the recession over and our strong economic recovery well underway, I am increasingly alarmed that the Fed continues to inject record amounts of stimulus into our economy.”

The letter comes at a time when the Senate is debating amendments for the $1 trillion bipartisan infrastructure bill, which could pass the chamber within days. Manchin has emerged as a key figure in his party’s efforts to pass an ambitious legislative agenda backed by President Biden.

Democrats, meanwhile, are drafting a separate $3.5 trillion reconciliation bill aimed at addressing climate change, supporting U.S. workers, and other priorities. Manchin’s vote is necessary for Democrats, as they will need all 50 members of their caucus to agree to pass the reconciliation bill, with Vice President Kamala Harris providing the decisive tie-breaking vote, if necessary.