Biden wants to triple tariffs on Chinese steel

He delivered the message on April 17, during a visit to steel workers in Pennsylvania, where union support could play a key role in his re-election bid for the White House this year.

The tariff that Mr. Biden wants to impose on steel and aluminum imported from China is 22.5%, triple the current level (7.5%). The White House insists that this policy is aimed at protecting American manufacturing from unfair trade practices, rather than seeking political support from labor unions.

China produces about half the world’s steel and is supplying more than its domestic market needs. US government officials say the country exports steel at less than half the price of US steel.

The US imported $6.1 billion in steel in the 12 months through February 2023, but only 3% of that came from China. With existing trade barriers in place, the American Iron and Steel Institute said Chinese steel accounted for 2.1% of the US’s steel imports last year, ranking it seventh among foreign sources.

However, the White House said it would pursue anti-dumping investigations into countries and importers that try to harm domestic markets with foreign steel. It said it was working with Mexico to ensure Chinese companies cannot transit products there to the United States to avoid tariffs.

White House national economic adviser Lael Brainard said the president sees the need to invest and protect American manufacturing and workers from unfair export practices related to China's overcapacity.

Mr Biden’s message was welcomed by domestic producers of the commodity. Kevin Dempsey, president of the American Iron and Steel Institute, accused China of disrupting the world market by “subsidizing steel production and dumping it in this country and other markets”.

But some worry that the tariffs will carry major economic risks. Steel and aluminum could become more expensive, raising the cost of cars, building materials and other essential goods for American consumers.

Inflation has been a major economic headache for Mr. Biden, and his shift toward protectionism by raising tariffs like his predecessor Donald Trump could hurt the U.S. economy, according to consulting firm Oxford Economics.

In response, White House Council of Economic Advisers Chairman Jared Bernstein said considering a sharp increase in tariffs on Chinese metal products would not affect inflation and was necessary for national security.

During a recent visit to China, Treasury Secretary Janet Yellen warned that the country's flooding of global markets with cheap goods and low-priced steel has severely damaged industries around the world, the U.S. Beijing expressed concern about the trade and economic restrictions imposed by the U.S. on China.

US Secretary of State Anthony Blinken is also about to visit this country.

Also during the visit on April 17, when asked about escalating trade tensions with China, Mr. Biden replied "there is no trade war".