President Joe Biden has made a strong commitment to protect US Steel from being taken over by a Japanese competitor. Furthermore, he has expressed his willingness to increase tariffs on Chinese-made aluminum and steel imports if an investigation confirms that the Chinese government is still engaging in unfair practices to support its state-subsidized industries.
In a speech delivered to a crowd of enthusiastic union steelworkers in Pittsburgh, Pennsylvania, President Biden, who proudly identifies as the “most pro-union president in US history,” unveiled several major announcements. The event took place in the same city that is home to the renowned American steel producer, which recently announced its acquisition by Japan’s Nippon Steel.
In Pittsburgh, he had declared his candidacy for the 2020 presidential election almost five years ago. He vividly remembered his commitment to revive the American middle class, which he aptly described as possessing a resolute and unyielding spirit.
According to the speaker, US Steel has been a symbol of American identity for over a hundred years and it should continue to be completely American.
“We have a company that is American owned, American operated, and staffed by the most skilled union steelworkers in the world. I can assure you that we are committed to making this a reality.”
The president is contemplating the idea of increasing tariffs on Chinese-made steel and aluminum, which were initially imposed by his predecessor, Donald Trump. This decision is pending the outcome of an ongoing investigation led by US Trade Representative Katherine Tai.
The Chinese government has been consistently investing state funds into Chinese steel companies, encouraging them to maximize their steel production. This excessive production, supported by government subsidies, has resulted in an oversupply of steel in the global market. As a consequence, Chinese companies are able to sell their steel at unfairly low prices. What’s more, these companies do not need to prioritize profitability as they receive financial support from the government.
“They’re not competing— they’re cheating,” he stated firmly.
In addition, Mr. Biden highlighted the detrimental impact of China’s steel dumping on the economies of steel-producing regions in Pennsylvania. He firmly pledged that he would take decisive action to prevent any recurrence of such harmful practices in the future.
“My US Trade Representative is currently investigating the trade practices of the Chinese government in relation to steel and aluminium. If the investigation verifies these anti-competitive trade practices, I urge her to contemplate raising the tariff rates for steel and aluminium imports from China by threefold,” he stated.
In a recent announcement, the president revealed that he has been engaging in discussions with Mexican President Andres Manuel Lopez Obrador regarding the issue of China using Mexico as a means to evade tariffs.
“We will work together with Mexico to solve it, I promise you,” he assured.
According to him, he is ready to take action in order to safeguard American shipbuilding from Chinese dumping practices. However, this is contingent upon the results of a separate investigation.
“These actions have been strategically planned and specifically targeted to safeguard American workers and promote fair competition,” he explained. He then highlighted the difference between his approach and Mr. Trump’s, who had proposed a broad tariff on all Chinese-made goods, which would ultimately be paid by American consumers.
According to him, if they were successful in doing so, the average American family would have to bear an annual cost of around $1,500. He believes that Trump fails to grasp this concept.
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