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Biden Calls For Tariffs On Chinese Steel
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Biden Calls For Tariffs On Chinese Steel

On Wednesday, President Joe Biden called for increasing tariffs on Chinese steel and aluminum during a speech to union members in Pennsylvania, a key battleground state. He accused China of "cheating" in its trade practices and directed the U.S. Trade Representative to investigate and consider tripling the current tariffs on these imported goods.

The move marks a departure from the previous administration's stance on tariffs, as former President Donald Trump had imposed tariffs on a variety of goods from different countries, including China, to support U.S. industries. However, Biden has maintained some of these tariffs and continued to push for protectionist policies.

During his speech, Biden also addressed concerns about potential backlash from China, stating that he was not worried about damaging his relationship with Chinese President Xi Jinping. The president has been ramping up his economic rhetoric against China, with Wednesday's speech focusing on the alleged overproduction and "cheating" by the Chinese government, which drives down prices and hurts American businesses.

The current average tariff rate on Chinese steel and aluminum is 7.5%, and the proposed increase would triple this rate, potentially raising prices for American consumers. Critics argue that this could lead to inflation and harm the U.S. economy, while the Biden administration argues that it will protect American jobs and the steel industry.

The president is also directing his administration to work with Mexico to prevent China from evading tariffs on steel and aluminum imports by funneling them through Mexico. The U.S. trade representative's office will also launch an investigation into China's practices in the shipbuilding, maritime, and logistics industries.

While the Trump administration had pushed for tariffs to address the U.S. trade deficit, Biden's motive for increasing tariffs is to address China's "abusive" economic behavior. He acknowledged the U.S.'s need to "get tough on China" but also stressed the importance of working with international partners to hold China accountable and negotiate new trade rules.

The push for higher tariffs on China comes as the White House faces criticism for its opposition to a potential buyout of U.S. Steel by Japan's Nippon Steel. Some see this as an effort to protect American businesses and jobs, while others argue it could harm the economy and consumers.

However, the Biden administration believes that the U.S. economy is in a strong position to take a tougher stance against China. A senior administration official stated that the proposed tariffs would not cause inflation but would instead benefit American workers and the steel industry.

The White House's push for higher tariffs on China also aligns with President Biden's efforts to appeal to blue-collar workers, as he has emphasized his support for unions and their members. During his visit to Pennsylvania, he touted the creation of nearly 800,000 manufacturing jobs and a record high in construction employment under his administration.

However, not all in the state support this approach. Trump supporter John Basalyga, a developer in Scranton, argues that corporations are at fault for causing inflation and rising prices rather than trade policies.

The Trump campaign has also responded to Biden's speech, with spokeswoman Kayleigh McEnany stating that the president has been a strong advocate for American workers and businesses on the world stage. She criticized Biden's past support for free trade deals such as NAFTA and TPP, saying that he has a history of betraying blue-collar workers.

The issue of trade is a contentious one for the Democratic Party, with some contenders, including Sens. Bernie Sanders and Elizabeth Warren, agreeing with Trump's view that free trade has harmed American workers. However, Biden has been a staunch supporter of U.S. trade policy and has called for "new rules" and "new processes" to shape trade relationships.

The U.S.-China trade conflict has caused concerns about its impact on the global economy, with both countries imposing tariffs on billions of dollars worth of goods. Talks between the two nations have recently resumed after stalling, but President Trump has expressed disappointment with China's lack of progress in buying more American agricultural products.

Biden's comments on trade came during a broader speech outlining his foreign policy plans, where he also criticized Trump's favorable comments about authoritarian leaders and use of military force. With the 2020 election approaching, Biden aims to position himself as a strong leader who will protect American workers and businesses while also advocating for international cooperation and alliances.

Written by Arthur Higgens - April 21, 2024