Biden Advocates for Higher Chinese Steel and Aluminum Tariffs
President Joe Biden has proposed an increase in tariffs on steel and aluminum imports from China, signaling a significant shift in U.S. trade policy. The proposed increase would raise tariffs from the current average of 7.5% to 25%. This initiative is part of a broader effort by the Biden administration to combat what it views as unfair trade practices by China, including market distortion and competition erosion through the sale of below-market-cost steel.
In response to these concerns, the administration plans to engage in anti-dumping investigations and work collaboratively with Mexico to prevent Chinese companies from bypassing U.S. tariffs by rerouting their steel through Mexico for export to the U.S. These measures follow Biden's support for domestic production, including a multi-billion-dollar investment to expand a Taiwanese semiconductor plant in Arizona, enhancing the U.S.'s competitive edge in microchip manufacturing.
The tariff increase is expected to have economic implications, potentially raising the cost of goods such as automobiles and construction materials for American consumers. Moreover, the U.S. Trade Representative is tasked with investigating China’s shipbuilding practices, which could lead to additional tariffs. The White House maintains that these actions are necessary to protect American industry and jobs rather than solely a political maneuver to secure union votes in the upcoming election. The proposed measures may also increase tensions with China, as Treasury Secretary Janet Yellen has urged the country to change its industrial policies, pointing to an oversupply of Chinese products on the global market.
