President Joe Biden is proposing a significant increase in tariffs on steel and aluminum imports from China as part of his strategy to gain support among blue-collar voters for the 2024 election. During his visit to the United Steelworkers headquarters in Pittsburgh, Biden will ask the United States Trade Representative (USTR) to consider tripling the existing 301 tariff rate on Chinese steel and aluminum.
The current average tariff on steel and aluminum is 7.5 percent under Section 301. Biden’s proposal aims to defend American steel and steelworkers by addressing China’s unfair practices in the manufacturing sector. China’s subsidies and other forms of support have led to exports flooding global markets at artificially low prices, undercutting American steel.
This move follows the tariffs imposed by former President Donald Trump in 2018, where he imposed 25 percent tariffs on China-imported steel and 10 percent on Chinese aluminum on national security grounds. Trump aimed to protect domestic producers from global overproduction, as China had flooded the global market with cheap steel for over a decade, causing significant damage to businesses worldwide, including in the United States.
When Biden took office, he maintained the existing tariffs on China to protect American steel and aluminum industries. However, labor unions have pressured him to extend the tariffs on Chinese goods. The United Steelworkers (USW) even requested an investigation into China’s unfair practices in the maritime, logistics, and shipbuilding sectors.
China alone accounts for about half of world steel production, and its export steel prices are 40 percent lower than U.S. steel prices. This stark difference in prices presents a challenge for American steel manufacturers and justifies the need for increased tariffs to level the playing field.
The Biden administration is also engaging in discussions with the Mexican government to prevent China from evading tariffs by importing goods through Mexico into the United States. They hope to reach a mutually acceptable solution to address this issue.
During his visit to Pittsburgh, Biden plans to address concerns about the takeover bid of US Steel by Nippon Steel. He believes that US Steel is an iconic American steel industry that should remain domestically owned and operated.
This proposal by President Biden aligns with his economic agenda and differentiates it from that of his 2024 presidential rival and predecessor, former President Donald Trump. Biden aims to raise taxes on wealthy individuals and big corporations to support his economic plan. He emphasized the importance of where one comes from and highlighted his connection to Scranton, his hometown, during a recent campaign event.
Pennsylvania, with its 19 critical electoral votes, is a key focus for the Biden campaign. In 2016, Trump won the state by a narrow margin, contributing to his election victory. However, in 2020, Biden secured the state with an even larger margin. As part of his campaign strategy, Biden is utilizing his visit to Pennsylvania to promote his economic plan and engage with voters.
Following his visit to Pittsburgh, President Biden will continue his campaign events in Philadelphia. The White House aims to demonstrate the president’s commitment to revitalizing the economy and addressing the concerns of American workers in vital industries like steel and aluminum.
