Biden Tells USTR to 'Consider' Tripling Section 301 Tariffs on Chinese Steel and Aluminum
President Joe Biden on April 17 called for a “tripling” of Section 301 tariffs on Chinese steel and aluminum, urging the Office of the U.S. Trade Representative to “consider” the increase from the current average 7.5% rate in its ongoing review of Section 301 tariffs.
“American workers continue to face unfair competition from Chinese imports of steel and aluminum products, which are among the world’s most emissions-intensive,” the White House said in a fact sheet. “Chinese policies and subsidies for their domestic steel and aluminum industries means high-quality U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions.”
“To the extent consistent with the [USTR] review of Section 301 tariffs and findings of her investigation, President Biden is calling for USTR to consider enhancing the effectiveness of tariffs on Chinese steel and aluminum products by tripling them.”
Asked on a press call held the previous day how the USTR will consider the president's call for higher tariffs, a senior administration official said, "The first step would be conclusion of the four-year review. And, as you know, that statutory review is ongoing. We hope to see results on that review soon.
"And based on the findings of that review, then further responsive action and enhancing the effectiveness of the tariffs could be taken into account, consistent with the President's call," the official said.
Biden also will direct “his senior team to work with Mexico to jointly prevent China’s and other countries’ evasion of tariffs on steel and aluminum that is imported from Mexico into the United States,” the fact sheet said. “This is a growing challenge that must be addressed to prevent Chinese and others’ steel exports from gaining access to the U.S. market and evading Section 232 or Section 301 tariffs.”
The fact sheet also said it’s “vital” for U.S. Steel “to remain an American steel company that is domestically owned and operated,” again pushing back at a bid by Nippon Steel to acquire the Pittsburgh-based steelmaker (see 2403140022). U.S. Steel shareholders approved the takeover April 12.
While it applauded the announcement of the potential new tariffs, the Coalition for a Prosperous America in a news release April 17 criticized Biden’s failure to “include direct action to address Mexico’s blatant violation of a 2019 joint steel agreement.” While it noted that Biden would be sending a team to work with Mexico, CPA said that the administration “has done nothing” even though it has been “aware for more than a year of this problem.”
The United Steelworkers labor union also came out in favor of the new tariffs. “Tens of thousands of good, union jobs hang in the balance as a result of illegal trade practices and corporate greed,” USW International President David McCall said. “We’re grateful that President Biden is continuing to take bold action to ensure a level playing field for American workers.”