During a campaign speech in Pennsylvania, US President Biden attacked China with clear words. At the same time, he wants to ensnare steelworkers by increasing tariffs on Chinese steel.
US President Joe Biden wants to triple US tariffs on certain steel and aluminum imports from China and accuses Beijing of offering surplus steel to the global market at dumping prices. The Chinese government is pumping state money into Chinese steel companies and pushing them to produce as much steel as possible – much more steel than China needs, the Democrat complained on Wednesday during a campaign speech in the US state of Pennsylvania, which is historically known for its steel industry .
Prices are “unjustifiably low” because Chinese steel companies don’t have to worry about their profits, Biden said. “They don’t compete. They cheat. And we’ve seen the damage here in America,” Biden told steelworkers in Pittsburgh. Biden had recently asked his trade representative to consider taking appropriate steps to increase tariffs.
Biden on the campaign trail
Pittsburgh in western Pennsylvania is nicknamed the “Steel City.” Biden is currently on the campaign trail in the state – a so-called swing state that cannot be firmly attributed to either Democrats or Republicans. For Biden, the support of voters in the formerly industrial “Rust Belt” is extremely important.
With regard to steel production in China, the White House complained that American workers were exposed to unfair competition because of the import of Chinese products. The products were also among the most emissions-intensive in the world. Biden’s economic adviser Lael Brainard said China’s politically enforced overcapacity poses “a serious threat to the future of America’s steel and aluminum industries.”
The current average tariff on steel and aluminum imports from China is 7.5 percent. This sentence comes from the presidency of Biden’s predecessor, the Republican Donald Trump. Also on Wednesday, Trade Representative Katherine Tai’s office announced that it would launch an investigation into Chinese trade practices in the shipbuilding, shipping and logistics sectors following a petition from five U.S. unions. Steel is a critical component, especially in shipbuilding.
Trade conflict
Washington and Beijing have been embroiled in a trade conflict for years. Biden left in place tariffs against China that Trump had imposed. The US also imposed economic sanctions and export restrictions to make it more difficult for Beijing to access US technologies. Biden’s administration also introduced restrictions on U.S. investments in China. Biden also initiated large-scale investments at home to make America’s supply chains more independent – especially from China. However, both countries are closely intertwined economically.
Biden, who wants to move back into the White House after the presidential election in November, was able to secure the support of the important steel workers union USW in March. Recently there was a stir when the largest Japanese steel company, Nippon Steel, would take over its American rival US Steel. Last week, US Steel shareholders approved the deal worth around $14.9 billion (13.7 billion euros). Union representatives in the United States are strongly opposed to the takeover – they fear for American jobs. Biden also spoke out against the deal in an unusual step in mid-March.
Politico magazine reported that the US Justice Department is reviewing the deal because of antitrust concerns. On Wednesday, the White House made it clear once again in a statement that it was against the takeover. “It is critical that it remains an American company that is domestically owned and operated.”
Source: Stern
