The Day at a Glance | Jul 11 2022

The Top

*US Secretary of Commerce, Gina Raimondo, assured that Biden`s administration is still discussing a decrease of tariffs on Chinese goods.

*Inflation for consumers in China during June increased more than expected (2.5% annual); inflation for producers was more moderate and set at 6.1%.

*French Minister of the Economy and Finance, Bruno Le Maire, considers it`s very likely that flows of natural gas from Russia will be cut this summer.

*Credit in China increases after economic stimulus implemented by authorities.

*Global COVID-19 cases reach their highest level since March of 2022 as the Omicron`s new variant spreads.

Economic environment

Biden administration still discussing import tariffs on Chinese imports. According to statements made by Gina Raimondo, US Secretary of Commerce, President Biden will announce an easing of some tariffs on Chinese goods implemented during the Trump administration. Raimondo assured that the President is close to making a decision, although the specifics are still being discussed. The intention is to reduce inflationary pressures in the US economy through more moderate tariffs placed on goods imported from China, especially consumer goods. The Biden administration, however, will seek to withdraw tariffs in a selective manner in order for workers and US industries that compete with China to not be affected. Nevertheless, some members of the administration consider that the action will have a limited impact on inflation and will reduce US negotiation powers with China, which is why they don`t believe easing tariffs is a good alternative. Since May, the administration has made it clear that it will maintain tariffs on inputs like aluminum and steel.