President Joe Biden is pushing to triple the China tariff rate on steel and aluminum imports as he visits the United Steelworkers headquarters in Pittsburgh, Pennsylvania to make clear that his administration’s warnings about China’s trade practices are not empty threats. Treasury Secretary Janet Yellen recently raised concerns about Chinese subsidies creating an oversupply of clean energy products, potentially harming domestic industries. In response, the Biden administration is considering hiking tariffs on Chinese imports to address the issue of overcapacity and unfair competition in the global marketplace.
Despite denials from Chinese officials and state media, the Biden administration remains committed to addressing what it sees as a serious risk to the American steel and aluminum industry posed by China’s policy-driven overcapacity. National Economic Council Director Lael Brainard emphasized that China’s excessive supply of clean energy products cannot be sustained and is damaging global trade. The U.S. Trade Representative has been instructed to explore raising tariffs as a means of countering China’s trade practices.
Biden’s push to increase tariffs on Chinese imports comes at a crucial time, as he must balance election-year politics, a delicate geopolitical landscape, and concerns about the U.S. economy. The administration is working to improve relations with China while also addressing issues of unfair competition and protecting American industries. The potential tariff hikes are seen as a way to safeguard American jobs and industries, without significantly impacting inflation or consumer prices.
The Biden administration’s stance on China is also aimed at appealing to blue-collar workers and maintaining a tough position on trade. Biden’s opposition to the proposed sale of U.S. Steel to Japan’s Nippon Steel underscores his commitment to supporting domestically owned and operated companies like U.S. Steel. By taking a firm stance on trade issues with China, Biden seeks to demonstrate his commitment to American workers and industries, particularly in battleground states like Pennsylvania.
While recognizing the potential economic impacts of raising tariffs on Chinese imports, the Biden administration is determined to address concerns about overcapacity and unfair trade practices. The administration believes that protecting American industries from foreign competition is crucial for maintaining a strong economy and ensuring the viability of key sectors like steel and aluminum production. By signaling a willingness to take action against China’s trade practices, Biden hopes to strengthen his position among voters and demonstrate his commitment to protecting American workers and industries.
