The White House indicated that President Biden would take action against China to help defend the US steel and shipbuilding sectors.
On Wednesday, Biden urged the United States Trade Representative (USTR), which monitors foreign governments’ compliance with trade accords, to quadruple tariffs on Chinese steel and aluminum imports. He also urged the USTR to probe China’s unfair shipbuilding practices.
“The Biden-Harris Administration recognizes growing concerns that unfair Chinese trade practices, including flooding the market with below-market-cost steel, are distorting the global shipbuilding market and eroding competition,” the White House said in a statement.
The report states that five labor unions outlined these concerns in a petition to the U.S. Trade Representative, requesting an investigation into Chinese acts, policies, and practices in the maritime, logistics, and shipbuilding sectors.
In the statement, the White House stressed the importance of American-made steel, saying it is still “critical for our economic and national security.”
“Steel is a crucial input for our home shipbuilding industry, from commercial shipping boats transporting American products to US naval vessels that keep the world’s oceans safe. Commercial shipyards provide industrial capability to preserve the United States Navy’s dominance while also supporting thousands of suppliers and employment, according to the White House statement.
“President Biden’s strategic trade and investment agenda protects workers, consumers, and businesses from unfair competition,” the statement went on to say. “At the same time, American workers in the steel and aluminum industries confront a substantial challenge from Chinese exports of steel and aluminum, which are among the most emission-intensive products on the planet. Because of China’s overcapacity and non-market expenditures in the steel and aluminum industries, high-quality American products must compete with artificially low-priced alternatives that emit more CO2.
The Biden administration is adopting new efforts to promote American steel manufacturing and shipbuilding, including requesting that the USTR quadruple the existing tax under Section 301 of the Trade Act.
The current average tax on Chinese imports under Section 301, which covers certain steel and aluminum items, is 7.5%.
“Chinese rules and subsidies for their local steel and aluminum sectors result in high-quality US products being undercut by artificially low-priced Chinese alternatives with higher emissions.” To the extent consistent with the United States Trade Representative’s (USTR) review of Section 301 tariffs and findings of her investigation, President Biden is calling on USTR to consider tripling the effectiveness of tariffs on Chinese steel and aluminum products,” the White House stated.
To avoid the increasing tariffs, China swaps its exports with Mexico, which then imports them into the United States.
“This is a rising concern that must be addressed to keep Chinese and foreign steel exports from entering the US market and dodging Section 232 or Section 301 duties.” President Biden recently sent senior members of his administration to Mexico to address this issue,” the White House stated.
In addition to steel and aluminum, the USTR has launched a probe into China’s unfair trade practices in shipbuilding, nautical, and logistics.
Biden also announced the development of six clean iron and steel projects in Pennsylvania, Ohio, the South, and the Midwest to help the United States steel industry remain competitive.
These include a $75 million high-silicon grain-oriented electrical steel facility in Lyndora, Pennsylvania, and a $500 million Cleveland-Cliffs plant in Middletown, Ohio.
The White House indicated that President Biden would take action against China to help defend the US steel and shipbuilding sectors.
On Wednesday, Biden urged the United States Trade Representative (USTR), which monitors foreign governments’ compliance with trade accords, to quadruple tariffs on Chinese steel and aluminum imports. He also urged the USTR to probe China’s unfair shipbuilding practices.
“The Biden-Harris Administration recognizes growing concerns that unfair Chinese trade practices, including flooding the market with below-market-cost steel, are distorting the global shipbuilding market and eroding competition,” the White House said in a statement.
The report states that five labor unions outlined these concerns in a petition to the U.S. Trade Representative, requesting an investigation into Chinese acts, policies, and practices in the maritime, logistics, and shipbuilding sectors.
In the statement, the White House stressed the importance of American-made steel, saying it is still “critical for our economic and national security.”
“Steel is a crucial input for our home shipbuilding industry, from commercial shipping boats transporting American products to US naval vessels that keep the world’s oceans safe. Commercial shipyards provide industrial capability to preserve the United States Navy’s dominance while also supporting thousands of suppliers and employment, according to the White House statement.
“President Biden’s strategic trade and investment agenda protects workers, consumers, and businesses from unfair competition,” the statement went on to say. “At the same time, American workers in the steel and aluminum industries confront a substantial challenge from Chinese exports of steel and aluminum, which are among the most emission-intensive products on the planet. Because of China’s overcapacity and non-market expenditures in the steel and aluminum industries, high-quality American products must compete with artificially low-priced alternatives that emit more CO2.
The Biden administration is adopting new efforts to promote American steel manufacturing and shipbuilding, including requesting that the USTR quadruple the existing tax under Section 301 of the Trade Act.
The current average tax on Chinese imports under Section 301, which covers certain steel and aluminum items, is 7.5%.
“Chinese rules and subsidies for their local steel and aluminum sectors result in high-quality US products being undercut by artificially low-priced Chinese alternatives with higher emissions.” To the extent consistent with the United States Trade Representative’s (USTR) review of Section 301 tariffs and findings of her investigation, President Biden is calling on USTR to consider tripling the effectiveness of tariffs on Chinese steel and aluminum products,” the White House stated.
To avoid the increasing tariffs, China swaps its exports with Mexico, which then imports them into the United States.
“This is a rising concern that must be addressed to keep Chinese and foreign steel exports from entering the US market and dodging Section 232 or Section 301 duties.” President Biden recently sent senior members of his administration to Mexico to address this issue,” the White House stated.
In addition to steel and aluminum, the USTR has launched a probe into China’s unfair trade practices in shipbuilding, nautical, and logistics.
Biden also announced the development of six clean iron and steel projects in Pennsylvania, Ohio, the South, and the Midwest to help the United States steel industry remain competitive.
These include a $75 million high-silicon grain-oriented electrical steel facility in Lyndora, Pennsylvania, and a $500 million Cleveland-Cliffs plant in Middletown, Ohio.
