Trade Representative Office (USTR) Ordered to Consider Policy Enforcement
Points Out China's Unfair Trade Practices
Trump Also Pledges High Tariffs if Re-elected
U.S. President Joe Biden has instructed the U.S. Trade Representative (USTR) to consider tripling tariffs on Chinese steel and aluminum. This move is due to workers in related industries within the United States suffering from unfair competition with China. Former President Donald Trump also vowed during his tenure to impose high tariffs on all Chinese products, reflecting a trend where candidates focus on "toughening up on China" to win votes ahead of the U.S. presidential election.
The White House announced on the 17th (local time) that President Biden directed the USTR to consider implementing a policy to triple tariffs on Chinese steel and aluminum, citing China's unfair trade practices.
The current average tariff on certain Chinese steel and aluminum products is 7.5%, but the rate directly recommended by President Biden on this day reaches 25%. Since China is a major supplier of steel and aluminum in the global market, including the U.S., attention is focused on how this measure, if implemented, will affect the competitiveness of steel and aluminum products from key manufacturing countries such as South Korea.
The White House pointed out that "American workers continue to face unfair competition due to imports of Chinese steel and aluminum products." It also criticized that "China's subsidies and protectionist policies for its steel and aluminum industries artificially weaken high-quality American products because of China's low-priced substitutes."
The White House explained that President Biden requested the USTR to strengthen the effectiveness of tariffs on Chinese steel and aluminum products by tripling the tariff rates in accordance with the review and investigation results under Section 301 of the Trade Act. The USTR is a presidential agency leading U.S. trade policy. Section 301 of the Trade Act is an economic security law that allows the U.S. administration to investigate other countries' trade practices or policies and impose sanctions on imports if trade barriers are identified. The White House emphasized that the Department of Commerce is taking action against countries and importers that do not comply with regulations and flood the market with low-priced products.
It is observed that President Biden's directive aims to appeal to the votes of workers in battleground states such as Michigan and Pennsylvania, where the steel industry is a key sector, ahead of the U.S. presidential election in November. Already, Republican presidential candidate former President Trump has warned of a "trade war" with China, stating that "if re-elected, tariffs of over 60% could be applied to all Chinese imports."
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