In a bid to bolster support among blue-collar voters ahead of the November election, President Joe Biden has advocated for a significant increase in tariffs on Chinese steel and aluminum. This move, announced on Wednesday, underscores Biden’s efforts to address what he perceives as “unfair competition” from China in crucial industries.
The call for higher tariffs coincides with the initiation of a probe by the US Trade Representative into China’s trade practices in sectors such as shipbuilding, maritime, and logistics. This probe follows a petition submitted by five US unions, highlighting concerns over China’s dominance in these industries.
President Biden, who is currently on a three-day trip through Pennsylvania, a key swing state, is set to address steelworkers in Pittsburgh. His message emphasizes a commitment to revitalizing American manufacturing, a sentiment echoed by his election rival, Donald Trump.
The White House cited Chinese policies and subsidies as contributing factors to the disparity between US and Chinese steel prices. According to a senior US official, China’s substantial share of global steel production coupled with lower export costs poses a significant challenge to US manufacturers.
Biden has urged the US Trade Representative to triple tariffs on Chinese steel and aluminum under Section 301 of the Trade Act, currently averaging at 7.5 percent. This section was prominently utilized during the trade war with China under the Trump administration.
Simultaneously, the USTR has initiated an investigation into China’s trade practices in response to union petitions, particularly targeting industries like shipbuilding. Biden’s administration has emphasized the importance of protecting American industries and preventing tariff evasion, particularly in collaboration with Mexico.
The president has garnered support from unions like the United Steelworkers, advocating for the preservation of American companies like US Steel. Lael Brainard, Biden’s National Economic Adviser, highlighted the significance of domestic steel production in bolstering the US middle class.
While Treasury Secretary Janet Yellen addressed concerns about Chinese exports flooding global markets during her recent visit to China, the Chinese embassy in Washington defended their exports as a result of market demand.
Despite China’s stance, the Biden administration remains steadfast in its recognition of the impact of unfair trade practices on global markets, particularly in the context of Chinese steel exports.
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