US inflation out of control

CHRIS STEIN

With US prices rising at a rate not seen in decades, President Joe Biden's administration is looking for ways to turn the tide.

From relaxing tariffs on China to addressing the semiconductor shortage, there are many actions Washington could take to keep price increases in check.

However, analysts warn that few will offer immediate relief from the price surge that has struck the world's largest economy this year as it bounces back from the Covid-19 pandemic:

Under former president Donald Trump, the United States imposed tariffs on Chinese products worth US$370 billion in 2018, citing trade practices Washington deemed unfair.

The Biden administration has kept those tariffs up, but announced it would review trade strategy towards China, as well as begin a process for some US firms to receive exemptions from the levies they say drive up costs.

China is the top supplier of goods to the United States, and Biden could choose to relax the tariffs further to address the price increases, which the Labor Department put at a year-on-year rate of 6.2% in October.

In a Sunday interview with CBS, Treasury Secretary Janet Yellen was noncommittal about changing tariff policy, but acknowledged that "it would make some difference." "Tariffs do tend to raise domestic prices," she said.

Jay Bryson, chief economist for Wells Fargo's corporate and investment bank, said a tariff rollback would help "at the margins" and lower the costs of some goods, but wouldn't strike the death blow against inflation Biden may be looking for.

Even if tariffs were dropped, the United States would still have to deal with snarls at its ports. Ships have idled off the coasts of Los Angeles and Savannah, Georgia for months waiting for cargo to be offloaded, raising fears of disruptions to the holiday shopping season. -Nampa/AFP