Biden pursues increased tariffs on Chinese steel to appeal to union voters
- In Reports
- 05:13 PM, Apr 17, 2024
- Myind Staff
President Joe Biden wants to make imported steel from China more expensive by tripling the taxes on it. He hopes this will help American steel companies because too much cheap steel from China is coming into the country. He planned to talk about this during a speech to steelworkers in Pennsylvania, an important state for him.
The decision highlights the convergence of President Biden's international trade policy with his campaign strategy aimed at winning over voters in a state that is expected to have a significant impact on the outcome of the November election.
The White House maintains that the primary objective is to protect American manufacturing from unfair trade practices abroad, rather than simply appealing to a union audience.
In addition to proposing an increase in steel tariffs, President Biden will also seek to triple levies on Chinese aluminium, which currently stand at 7.5% for both metals. The administration has further pledged to initiate anti-dumping investigations against countries and importers attempting to flood existing markets with Chinese steel.
Additionally, it has stated its collaboration with Mexico to prevent Chinese companies from circumventing tariffs by exporting steel to Mexico for subsequent shipment to the U.S.
During a call with reporters, White House National Economic Adviser Lael Brainard stated that the president recognises the necessity to invest in American manufacturing. However, he also emphasised the importance of safeguarding these investments and the workers from unfair exports linked to China's industrial overcapacity.
During a visit to the United Steelworkers union headquarters in Pittsburgh, Biden announced that he is requesting the U.S. Trade Representative to contemplate tripling the tariffs. The president's three-day tour of Pennsylvania, which started in Scranton, will also feature a visit to Philadelphia.
According to the administration, China is distorting markets and undermining competition by flooding the market with steel priced below market value.
Brainard warned that China's policy-driven overcapacity presents a significant threat to the future of the American steel and aluminium industry. Referring to China's economic downturn, she stated that Beijing cannot achieve recovery through exports. Brainard asserted that China's size renders it incapable of adhering to its own regulations.
Higher tariffs carry significant economic risks, which could result in higher costs for important items like cars and construction materials, affecting consumers in the United States. Biden's adoption of protectionist measures mirrors those of his predecessor, Donald Trump, who imposed tariffs on Chinese goods during his tenure and has threatened further levies unless his preferred trade terms are met. An analysis by Oxford Economics indicates that implementing Trump's proposed tariffs could negatively impact the overall U.S. economy.
Senior Biden administration officials have expressed their intention to pursue a "strategic and balanced" approach to new tariff rates, distinguishing their approach from the Trump administration.
China, responsible for half of the world's steel production, sells steel on the global market for significantly less than US-produced steel. Biden's announcement follows efforts to support Taiwanese semiconductor expansion in Arizona, aiming to enhance US competitiveness against Chinese chip manufacturers.
Treasury Secretary Janet Yellen cautioned against flooding the market with cheap goods during a recent visit to China, highlighting the impact of low-cost steel on industries worldwide, including in the US. The Chinese government has expressed concern over US trade and economic measures that restrict China. US Secretary of State Anthony Blinken is scheduled for an upcoming visit to China.
Image source: ABC NEWS
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