President Joe Biden is focusing on putting pressure on the Chinese steel industry during his visit to Pittsburgh, an area closely tied to American steel production. Biden’s economic policy includes a focus on investing in American manufacturing, despite receiving low marks for his handling of the economy. He will call for a review of tariffs on Chinese steel and aluminum, potentially tripling the existing rate to safeguard the US from China’s attempts to undercut domestic steel manufacturing.
The Biden administration is working with industry stakeholders and unions to develop a strategic and targeted approach to protect American manufacturing jobs from China’s industrial overcapacity. Efforts to crack down on China’s attempts to flood the market with cheap products through anti-dumping measures are also being highlighted. Biden previously spoke out against a deal for Japan’s Nippon Steel to purchase US Steel, emphasizing the importance of US Steel remaining domestically owned and operated.
Officials have downplayed concerns about potential tariffs leading to inflation, stating that the actions are intended to protect American jobs and the steel industry without impacting inflation. While tariffs on imports could ultimately lead to increased prices for US consumers, the focus is on safeguarding American jobs. The United Steelworkers union, representing workers in the steel industry, endorsed Biden’s reelection campaign last month.
Biden’s focus on the steel industry in Pennsylvania comes as he seeks to appeal to voters who remain skeptical of his economic policies. Recent polling shows a close contest between Biden and former President Trump, with the economy being a key issue for voters. Biden’s call for tariff hikes to protect American workers may be an attempt to counter criticism from Trump about being weak on China, as he continues to maintain tariffs imposed by the previous administration.
While Biden’s tariff hike proposal aims to protect American workers, it could also complicate efforts to stabilize the US-China relationship. China denies accusations of overcapacity and views US tariffs as protectionist measures. Biden has been working to improve relations with China, including direct conversations with President Xi Jinping, and recent discussions between Defense Secretary Lloyd Austin and his Chinese counterpart show progress. Overall, Biden’s approach to economic competition with China is a key focus during his visit to Pittsburgh.
