US President Joe Biden called for a sharp increase in US tariffs on Chinese steel and aluminium imports on Wednesday, accusing China of exploiting state funds to subsidise Chinese firms to undermine American competition, according to Reuters.
Biden accused the Chinese government of “dumping,” an international trade policy in which the country exports products to international markets at uncompetitively low prices.
The prices are unfairly low because China’s steel companies don’t need to worry about making a profit because the Chinese government is subsidizing so heavily. They’re not competing. They’re cheating. And we’ve seen the damage here in America.
Biden was speaking to a group of steelworkers in Pittsburgh, Pennsylvania.
US Trade Representative Katherine Tai is currently investigating steel and aluminium exports from China. Biden has stated that if this investigation “confirms these anti-competitive trade practices,” he will call on Tai to triple tariffs on Chinese aluminium and steel.
The US is aware that China is already trying to circumvent existing tariffs on products by importing through Mexico, which has a free trade agreement with the US, according to the US president. He has also pledged to steelworkers that he will work with the Mexican government to “solve” the issue.
I’m not looking for a fight with China. I’m looking for competition, but fair competition.
The US is also launching an investigation into whether China is trying to stifle competition in the shipbuilding industry by keeping prices artificially low.
Taken together, these are strategic and targeted actions that are going to protect American workers and ensure fair competition.
The president’s statements are expected to exacerbate already high tensions in US-China relations amid a wide range of disagreements over global trade and geopolitics.
Amid his speech at the United Steelworkers Headquarters, a large group of protesters demanded that the president should support an immediate ceasefire in the Gaza Strip.
