President Joe Biden promised cheering unionized steel staff on Wednesday that his administration would block a Japanese company’s takeover of U.S. Steel and called for tripling tariffs on Chinese steel to make use of trade policies to win working-class votes in Pennsylvania. an election 12 months battleground.
Biden said during a visit to the headquarters of the United Steelworkers union that US Steel “has been an iconic American company for more than a century and should remain fully American.”
“American owned, operated by American union workers – the best in the world – and that will happen, I promise you,” the Democratic president said.
His government is examining the planned takeover by Japan Nippon Steel. Biden said last month he would reject the deal, saying it was “critically important that the company remains a domestically owned and operated American steel company.”
But in front of a pro-union audience, he went much further. “The backbone of America has a spine of steel,” Biden said.
In one other move that his administration argues can protect domestic steelworkers, Biden is pushing for higher tariffs on Chinese steel and aluminum to guard American producers from a flood of low-cost imports.
While the announcements reflected the intersection between Biden’s international trade policies and his reelection efforts, the White House insisted they were more about protecting American industry from unfair trade practices abroad than galvanizing a union audience.
The current tariff rate is 7.5% for steel and aluminum, but could rise to 22.5%. Biden said he’s asking his trade representative to extend tariffs.
The administration also pledged to proceed investigations into countries and importers that seek to saturate existing markets with Chinese steel and said it was working with Mexico to be sure that Chinese corporations cannot evade tariffs by shipping steel there. to then export it to the United States.
“The president understands that we must invest in American manufacturing. But we also need to protect those investments and those workers from unfair exports tied to China’s industrial overcapacity,” said Lael Brainard, White House national economic adviser.
When Biden was greeted by a small group of steelworkers upon his arrival, one said, “Keep U.S. steel in America.” Biden responded, “Guaranteed.” And in his speech, the president told the group, “It’s not about that Work, but in regards to the unions.”
He was on a three-day Pennsylvania swing that began Tuesday in his hometown of Scranton and can include a visit to Philadelphia on Thursday.
In a transient exchange with reporters before his departure from Scranton, Biden was asked about escalating trade tensions with China and he replied, “No trade war.” Later, on the Scranton War Memorial, Biden crouched down and ran his fingers over the name of one among the Fallen – Uncle Ambrose J. Finnegan Jr., who died in World War II.
The announcement of steel tariffs was cheered by US steelmakers. Kevin Dempsey, president of the American Iron and Steel Institute, accused China of “disrupting global markets by subsidizing the production of steel and other products and selling those products at dumping prices in the United States and other markets.”
However, the tariff move is essentially symbolic.
According to the information, the US imported about $6.1 billion value of steel products within the 12 months ended February 2023, but only 3% of those imports got here from China Census Bureau figures. Citing pre-existing trade barriers, the American Iron and Steel Institute said China accounted for just 2.1% of U.S. steel imports last 12 months, making it America’s seventh-largest source of foreign steel.
Coinciding with the announcement, Biden’s campaign released a 60-second industrial that may air on Pennsylvania television over the following five days. In it, a steelworker who can be the mayor of a small town praises the president’s economic policy.
Meanwhile, U.S. Trade Representative Katherine Tai announced that her office is investigating China for “targeting the maritime, logistics and shipbuilding sectors for dominance” based on a petition from five national unions.
“The allegations reflect what we have already seen in other sectors,” Tai said in an announcement. “The allegations reflect what we have already seen in other sectors,” Tai said in an announcement.
The government has accused China of distorting markets more broadly and undermining competition by unfairly flooding the market with below-market steel.
“China’s policy-driven overcapacity poses a serious risk to the future of America’s steel and aluminum industries,” Brainard said. Reference to China Economic crisisShe added that Beijing “cannot export its path to recovery.”
However, higher tariffs can pose major economic risks. Steel and aluminum could turn into dearer, potentially increasing the associated fee of cars, constructing materials and other essential goods for U.S. consumers.
Inflation has already weighed on Biden’s political fortunes, and his embrace of protectionism mirrors the playbook of his predecessor and opponent in the autumn election, the Republicans Donald Trump.
The former president imposed Higher tariffs on Chinese goods During his time in office, he has threatened to boost tariffs on Chinese goods unless they’re traded on his preferred terms as he runs for a second term. An external evaluation by consulting firm Oxford Economics has found that the imposition of Trump’s proposed tariffs could harm the whole US economy.
China produces about half of the world’s steel and produces way over its domestic market needs. It sells steel on the worldwide marketplace for lower than half of what steel produced within the United States costs, based on government officials.
The first step toward higher tariffs is completing a review of China’s trade practices. Once Biden gives official approval, there will probably be a public notice and comment period.
Treasury Secretary Janet Yellen said during a recent visit to China: warned of market oversaturation with low-cost goods and said low-cost steel had “decimated industries around the world and in the United States.” According to China’s official news agency, the Chinese expressed great concern about US trade and economic measures restricting China. US Secretary of State Anthony Blinken also has an upcoming visit to China.
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Weissert reported from Washington. Associated Press author Josh Boak in Washington contributed to this report.
