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Biden Proposes Tripling Tariffs on Chinese Steel and Aluminum

President Joe Biden is calling for a threefold increase in tariffs on Chinese steel and aluminum, citing unfair competition and aiming to secure support from blue-collar voters ahead of November’s election.

The announcement comes as the US Trade Representative (USTR) initiates an investigation into China’s trade practices in shipbuilding, maritime, and logistics, following a petition by five US unions.

Biden, currently on a three-day trip through Pennsylvania, a crucial swing state, is set to address steelworkers in Pittsburgh, underscoring his commitment to revitalizing American manufacturing.

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Highlighting the impact of Chinese policies and subsidies on the US steel industry, the White House emphasized the need to address artificially low-priced Chinese alternatives that undercut American products.

A senior US official noted China’s dominance in global steel production and its export of metal at significantly lower prices than US steel.

As the USTR reviews tariffs imposed during the Trump administration, Biden is pushing for a tripling of existing tariffs under Section 301 of the Trade Act, which currently average 7.5 percent.

The White House also announced Biden’s directive to collaborate with Mexico to prevent tariff evasion by China.

Simultaneously, the USTR is investigating shipbuilding and related sectors in response to union petitions, alleging Beijing’s unfair practices.

USTR Katherine Tai pledged a thorough investigation into the unions’ concerns, emphasizing the need to address similar issues across various sectors.

Biden, who recently gained the support of the United Steelworkers union, opposes foreign acquisition of American steel companies like US Steel.

Acknowledging the historical significance of the American steel industry, Biden’s administration aims to protect domestic manufacturing from China’s unfair trade practices.

During her recent visit to China, Treasury Secretary Janet Yellen reiterated US concerns about underpriced Chinese exports flooding global markets, affecting industries worldwide.

However, China’s embassy in Washington defended its exports as meeting international market demands, prompting the White House to reiterate concerns about unfair trade practices distorting global markets.

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Staff Report

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