President Joe Biden may be getting closer to easing or removing some of the tariffs on China-made imports, which have contributed to price increases and impacted sourcing practices in the promotional products industry.

Citing unnamed sources close to the situation in an exclusive scoop, Axios reported on June 14 that Biden told members of his Cabinet in a meeting last week that he’s inclining toward lifting the levies from at least some consumer goods.

“Biden is leaning toward ordering the Office of the U.S. Trade Representative to run a formal ‘exclusions process’ to determine if some consumer items, such as bicycles, should be exempted from the Section 301 tariffs,” wrote Axios’ Hans Nichols. “He is less likely to include big industrial items, like steel and aluminum, in the process.”

When journalists questioned White House Press Secretary Karine Jean-Pierre about the Axios report, she stated that “some Trump tariffs were irresponsible and do not advance our economic or national security and instead raise costs for families and businesses,” according to a MarketWatch report.

Biden and his administration are “working to align these haphazard tariffs and our priorities,” Jean-Pierre continued, but there is nothing “to share about what the president’s decision is at this time.”

Will removing tariffs on China-made imports lower prices on promo products? ASI Media’s Christopher Ruvo tackles the question in this quick-hit video.

President Donald Trump implemented the tariffs on approximately $350 billion dollars’ worth of China-made imports in response to what he characterized as unfair trade practices by China.

Biden has previously called the tariffs “very effective,” but with inflation running at 40-year highs for months, the president and his administration are reportedly desperate to do something to ease the cost pressures on American household and business budgets in the runup to November midterm elections.

Still, there’s debate in the administration on whether removing the tariffs is a good idea. Some, like U.S. Trade Representative Kathrine Tai, think the levies are an important tool the U.S. has to help force China to meet trade commitments and end economic practices that give that nation an unfair advantage in the global marketplace.

Will Removing China Tariffs Bring Price Relief to the #Promoproducts industry and Impact Sourcing Practices? Some insights here:https://t.co/4Cz1Tu8TZ0 @asicentral

— Chris Ruvo (@ChrisR_ASI) June 3, 2022

What’s more, some economists argue removing the tariffs would have little tangible impact on inflation. One study shows that lifting the China tariffs would lower inflation by 0.26%. Consumer inflation has been running at over 8% for months. Wholesale prices in the U.S. rose 10.8% in May, a near-record pace.  

Promo executives have told ASI Media that removing or reducing tariffs on imports from China could potentially contribute to price reductions on products in the industry down the line, but that’s far from a given. Suppliers are facing a host of inflationary pressures beyond tariffs, along with cost uncertainties, that could negate any potential benefit from tariff removal, executives have said.

Meanwhile, nixing or lessening the levies could also compel at least some promo suppliers to increase their sourcing from China, counteracting a trend of recent years that’s seen firms move more production out of that nation due to the tariffs and COVID-related issues. Even with that sourcing change, the majority of promo products sold in North America continue to be manufactured in China.