President Joe Biden has made a firm commitment to preventing the acquisition of US Steel by a Japanese competitor. He also expressed his willingness to significantly increase tariffs on Chinese-made aluminum and steel imports. This decision would be based on the findings of an ongoing investigation into potential anticompetitive practices by the Chinese government to support their state-subsidized industries.
In an address to a fervent crowd of union steelworkers in Pittsburgh, Pennsylvania, President Biden, who proudly claims the title of the “most pro-union president in US history,” unveiled his latest announcements. This significant event took place in the heart of a city that is home to America’s renowned steel producer, recently acquired by Japan’s Nippon Steel in March.
In Pittsburgh, Biden announced his 2020 presidential campaign almost five years ago. He emphasized his objective to “rebuild the backbone” of the American middle class, referring to it as having “a steel spine”.
In his statement, he emphasized the significance of US Steel as a longstanding symbol of American industry. He firmly believes that US Steel should continue to uphold its American roots and maintain its status as an iconic American company for generations to come.
“We have a team of highly skilled American union steelworkers who own and operate our company. They are the best in the world, and I promise you that we will deliver top-quality products and services,” he confidently declared.
The president is contemplating the possibility of tripling tariffs on Chinese-made steel and aluminum. These tariffs were initially implemented by his predecessor, Donald Trump. The decision will depend on the outcome of an ongoing investigation, which is currently being overseen by US Trade Representative Katherine Tai.
The Chinese government has long been providing financial support to Chinese steel companies, encouraging them to produce an excessive amount of steel. This surplus is then dumped onto global markets at unfairly low prices. As a result, Chinese companies can prioritize quantity over profitability, as they benefit from government subsidies.
“He remarked that they are not competing, but rather cheating.”
According to Mr. Biden, the economies of steel-making areas across Pennsylvania have been severely impacted by China’s dumping of steel. He made a promise to prevent any similar incidents from occurring in the future.
“My US Trade Representative is currently conducting an investigation into the trade practices of the Chinese government in relation to steel and aluminium. If this investigation confirms the presence of anti-competitive trade practices, I urge her to contemplate the possibility of tripling the tariff rates for imports of steel and aluminium from China,” he stated.
In addition, the president revealed that he has been engaging in discussions with Mexican President Andres Manuel Lopez Obrador to address the issue of China utilizing Mexico as a means to evade these tariffs.
“We will work together with Mexico to find a solution. I assure you,” he declared.
According to him, he is ready to take action in order to safeguard American shipbuilding from Chinese dumping practices. However, this action is contingent upon the results of another investigation.
“These actions are strategic and targeted, aimed at protecting American workers and promoting fair competition,” he explained. He then highlighted the difference between his approach and Mr. Trump’s, who had proposed a blanket tariff on all Chinese-made goods, which would ultimately be paid by American consumers.
