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- US reviews China tariffs, possible pause on federal gas tax to curb inflation
US reviews China tariffs, possible pause on federal gas tax to curb inflation
“President Joe Biden's administration is reviewing the removal of some tariffs on China and a possible pause on the federal gas tax as the United States struggles to tackle soaring gasoline prices and inflation, two top officials said on Sunday,” per Reuters
The news also adds that Energy Secretary Jennifer Granholm said the President was also evaluating a pause on federal gas tax to bring down prices, telling CNN that such a move was "not off the table".
“Biden has said he is considering removing some of the tariffs imposed on hundreds of billions of dollars worth of Chinese goods by his predecessor in 2018 and 2019 amid a bitter trade war between the world's two largest economies,” mentions Reuters as well.
It’s worth noting that the weekend updates from Beijing were also positive for the risk appetite and can offer intermediate relief to the markets. However, hawkish Fed bets and recession fears keep challenging optimists.
FX implications
Antipodeans seem to have reacted to the news by starting the week on a positive note. That said, the AUD/USD pair is up 0.23% around 0.6935 by the press time of early Monday morning in Asia.
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