President Biden on Monday called for a tripling of tariffs on steel and aluminum imports from China, amid rising geopolitical tensions with the world’s largest steel producer and a 2024 This measure reflects the growing protectionist economic stance ahead of the election.
The move also reflects former President Trump’s trade war with China and is the latest continuation of trade policy between the former president and Mr. Biden, with Mr. maintained much of the
Biden was on the campaign trail Wednesday in Pennsylvania, a 2024 battleground state and historic home of the U.S. steel industry, touting new import taxes.
“The current average tariff on certain steel and aluminum products is 7.5% under Section 301,” the White House said in a release, adding, “President Biden has asked the USTR to strengthen the effectiveness of tariffs on Chinese steel and aluminum. We ask that you consider this,” he added. It’s about tripling the product. ”
The White House announced that the Office of the U.S. Trade Representative (USTR) would launch an investigation into China’s “unfair trade practices” in the shipbuilding and logistics industries, citing China’s “unique and aggressive series of interventions in these areas.” ” was criticized. Sector”
The study comes after the United Steelworkers union (USW ) in response to pressure from U.S. industry unions. at the center.
“The Chinese government has poured hundreds of billions of dollars into achieving the goals set out in the shipbuilding plan, adopted numerous supportive policies, and strengthened the leadership of these efforts in large state-owned enterprises,” the union said. The petition has been filed. USTR stated last month:
Industry and policy groups were quick to praise the administration for launching an investigation and calling for higher metal tariffs.
“The Biden administration is right to pursue an investigation into China’s predatory practices in the shipbuilding industry,” Scott Paul, president of the American Manufacturing Alliance, said in a statement.
Paul added that he was encouraged by Biden’s call to triple tariffs on Chinese steel imports.
The protectionist-minded economic policy group Coalition for a Prosperous America welcomes calls for higher tariffs, but calls for additional pressure from the administration on Mexico, which serves as a “conduit” for Chinese steel. suggested that it should.
An April analysis by the group found that “Chinese steel is likely to account for a significant portion of shipments from Mexico to the United States.”
The USW on Wednesday welcomed President Joe Biden to the union’s international headquarters as he announced a series of proactive steps his administration is taking to ensure U.S. trade policy supports workers and their communities. We welcome you with this in mind.”
The AFL-CIO, the nation’s largest labor union, did not respond to a request for comment.
The proposed tariffs follow the announcement in December of the sale of top U.S. steel producer US Steel to Japanese rival Nippon Steel, a merger that has sparked heated political debate and stimulated worker opposition.
The tariffs may be aimed at easing some of the resistance that came last week when the trade union USW vigorously demanded shareholder approval for the sale.
“We are not surprised that shareholders have chosen to cash out and sell out the employees and retirees of this iconic American company,” union leaders Mike Millsap and David McCall said Friday in a statement to the union. This was stated in a letter to members.
“Lawmakers of both parties, government agencies, regulators, and the President of the United States have all expressed concern and committed to a thorough investigation of this agreement,” they wrote.
Democratic lawmakers immediately praised the tariff hikes and the administration’s increased oversight of China’s economic policy, with statements of approval from Senate leadership and the Democratic side of the Ways and Means Committee.
Rep. Richard Neal (Massachusetts), the top House Democrat, said the USTR investigation is “further evidence of our workforce in moving these important conversations forward.”
China’s Ministry of Foreign Affairs did not immediately respond to questions about the proposed tariffs by email.
Even as China’s new tariff plans put domestic politics in the spotlight, analysts say the move could exacerbate an already widening rift between the two economic giants. Pointed out.
“Presidential election years tend to create turmoil in U.S.-China relations, even if relations between the two countries are relatively good. 2024 is not that time,” said Allen Carlson, an associate professor of government at Cornell University. he said in his commentary.
“In the past, the Chinese government has tended to discount and accept U.S. policy changes during election periods. But this year may be different, as President Xi’s China is in a stronger position than before.” I wrote this in reference to President Xi Jinping.
Nancy Chau, an economics professor at Cornell University, warned that the tariffs could harm the ongoing massive shift in the global economy: the transition to greener technologies.
As part of the green transition, U.S. policymakers are exerting more top-down control over the economy than in recent decades, and are increasingly questioning China’s economic competition in the process.
“By the time President Biden took office, we were grappling with the reality that large non-market economies had integrated in ways that posed substantial challenges to the international economic order,” National Security Adviser Jake Sullivan said in a speech. I had to,” he said. Last April.
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