On Wednesday, President Biden called for a significant increase in tariffs on Chinese metal products in response to the unfair trade practices of the Chinese Communist Party.
The White House stated on Wednesday that the Biden-Harris administration is taking new historic actions to support the American steel manufacturing and shipbuilding industries.
During a campaign speech in the key battleground state of Pennsylvania on Wednesday, President Biden urged the U.S. trade representative to double the tariff rates on Chinese steel and aluminum imports, as reported by Reuters.
While visiting “Steel City” Pittsburgh, Biden proposed raising the tariffs on certain Chinese steel and aluminum products imposed by his predecessor Donald Trump to 25%.
Biden is set to face off against Trump again in the 2024 presidential election for the White House.
Under the U.S. Trade Act Section 301 policies from the Trump era, products targeted currently face tariffs as high as 7.5%, with Biden initiating a review in 2022. According to a U.S. official, the proposed higher tariff rates would apply to steel and aluminum products worth over $1 billion.
The White House statement emphasized that President Biden understands that steel is the backbone of the American economy and a cornerstone of national security. However, American workers in the steel and aluminum industry are facing significant challenges due to China’s excess export capacity of steel and aluminum.
Steel is a crucial input for the domestic shipbuilding industry in the United States, supporting commercial vessels transporting American products and maintaining U.S. Navy ships ensuring global maritime security. Commercial shipyards provide industrial capabilities to sustain the U.S. Navy’s dominant position and support thousands of suppliers and job opportunities.
The White House added that the Biden-Harris administration recognizes the growing concerns about China’s unfair trade practices, including flooding the market with steel below market cost, distorting the global shipbuilding market, and weakening competition. Five unions submitted a petition to the U.S. trade representative outlining these concerns, urging an investigation into China’s behavior, policies, and practices in the maritime, logistics, and shipbuilding sectors.
The Biden administration is also pressuring neighboring Mexico to prohibit China from indirectly selling metal products to the U.S. through Mexico.
These measures were announced during Biden’s visit to the United Steelworkers headquarters. Pennsylvania is one of six battleground states that could determine the outcome of the November election rematch between Biden and Trump. The economy is one of the voters’ most concerning issues.
During Trump’s presidency from 2017 to 2021, he imposed broader tariffs on Chinese imports, triggering retaliatory tariffs by the Chinese Communist Party.
U.S. officials mentioned on Wednesday that these interventions are “targeted” and will not exacerbate the ongoing high inflation.
White House economic advisor Jared Bernstein stated to CNBC on Wednesday, “If we don’t act, we put one of our most critical industries – what the president calls the backbone of the American economy, the cornerstone of national security, at risk, that’s domestic steel production.”
Facing a long-standing weakness in China’s real estate sector and increasing local government debts, the CCP has turned to exports to sustain economic growth.
U.S. officials anticipate a surge of Chinese export goods into the global market, a concern raised by U.S. Treasury Secretary Janet Yellen during her visit to China last week.
According to Chinese customs data, China exported 25.8 million tons of steel in the first quarter, the highest level since 2016, marking a 30.7% year-on-year increase.
Biden’s top economic policy maker, Lael Brainard, told reporters, “China cannot achieve a recovery through exports.”
The Canned Food Manufacturers Association stated in a release that Biden’s proposal is “not enough” as the industry faces threats from China.
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