Ex-Trump Adviser: Lift high Tariffs On Chinese Goods

Former Trump economic adviser Gary Cohn supports President Joe Biden's proposal to withdraw some Trump-era tariffs imposed on China to combat excessive inflation, Matt Egan reported for CNN Business.

Photo Insert: Gary Cohn is now vice chairman of IBM.

"These tariffs are adding to the cost of many goods that US consumers are buying," Cohn told CNN Business. Cohn, now vice chairman of IBM, is a prominent supporter of free trade and has regularly clashed with Trump administration officials who prefer tariffs.

"Overall, some of the tariffs make sense. But a lot of the tariffs just act as a consumption tax," he said.

In addition to tariff reductions, Cohn encouraged Congress to combat inflation by investing in US supply networks. He specifically urged Congress to adopt the Bipartisan Innovation Act, a White House-backed bill that would invest in domestic computer chip production.

For months, Biden has been contemplating whether to reverse certain Trump tariffs in order to tackle America's worst inflation in four decades. Some large business groups have urged Biden to lift tariffs, while union officials have warned him not to. There has been no decision.

Cohn, a former Goldman Sachs CEO, announced his retirement from the Trump administration in March 2018, after Trump threatened to implement steel and aluminum tariffs.

"There's a variety of views on trade. My view on trade is pretty simple. If we manufacture something here in the United States, we should protect our manufacturers," Cohn told CNN Business.

"If we don't manufacture something here in the US, and we're not going to manufacture here in the US, I don't believe we should put a tariff on it." Biden said on Tuesday, as the US president weighs whether to reduce certain tariffs on China. Some of these tariffs, according to Treasury Secretary Janet Yellen, are affecting families and companies.

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