Staff Reports
President Biden is taking action to protect American steel and aluminum producers from unfair competition by proposing a tripling of tariffs on Chinese steel and aluminum. This move is part of his efforts to support American manufacturing and court voters in key battleground states like Pennsylvania.
Biden is seeking higher tariffs on Chinese steel as he courts union voters https://t.co/hhfmb707l0
— The Associated Press (@AP) April 17, 2024
The White House has emphasized that the increase in tariffs is aimed at addressing unfair trade practices rather than simply appeasing union workers. The administration also plans to pursue anti-dumping investigations against countries and importers who flood existing markets with below-market-cost Chinese steel.
National Economic Adviser Lael Brainard highlighted the potential risks posed by China’s policy-driven overcapacity and emphasized the need to safeguard American manufacturing and its workers from unfair exports associated with China’s industrial overcapacity.
Despite the potential economic risks associated with higher tariffs, the administration aims to take a strategic and balanced approach to new tariff rates. They argue that China’s overproduction of steel, coupled with its below-market pricing, poses a significant risk to the American steel and aluminum industry.
President Biden’s announcement aligns with his administration’s broader efforts to strengthen American manufacturing and compete with China in critical industries. This includes providing funding for a Taiwanese semiconductor company to expand its facilities in the U.S. and better compete with Chinese chip manufacturers.
Additionally, the proposed acquisition of Pittsburgh-based U.S. Steel by Japanese Nippon Steel has raised concerns. President Biden has expressed opposition to the merger, emphasizing the importance of maintaining American ownership and operation of vital steel companies.
In response to these developments, former President Donald Trump has criticized President Biden’s approach to the steel industry, particularly his opposition to the Nippon Steel acquisition.
President Biden’s proposal to triple tariffs on Chinese steel and aluminum reflects his administration’s commitment to protecting American manufacturing and addressing unfair trade practices, especially with regard to Chinese overcapacity and below-market pricing. This move is part of broader efforts to bolster American industries and compete with foreign rivals like China.
