Biden Pushes for Increased Tariffs on Chinese Steel in Economic Address in Pittsburgh

President Joe Biden is focusing on increasing pressure on the Chinese steel industry as he visits Pittsburgh, the hub of the American steel industry. This is part of his three-day campaign trail in Pennsylvania, a key battleground state.

During his visit to Pittsburgh on Wednesday, Biden emphasized the importance of fair competition with China rather than conflict. He highlighted the significance of investing in America and American workers to ensure success in economic competition in the 21st century, not just against China but also against other countries.

The domestic steel industry is crucial for various products like cars, appliances, roads, and bridges. President Biden has focused on investing in American manufacturing as a key part of his economic policy, despite receiving low ratings from voters on his economic performance.

Recently, the president talked about tax policy and met with union workers in his hometown of Scranton. He is also planning to attend campaign events in Philadelphia, aiming to create a clear contrast with former President Trump, who is currently involved in a criminal trial in New York City.

From the United Steelworkers headquarters, Biden urged the United States Trade Representative Katherine Tai to look into increasing the current 7.5% tariff rate on Chinese steel and aluminum. This would involve reviewing the Section 301 tariff rate once a four-year review is finished.

Officials anticipate that the review will wrap up shortly. Following the completion of the review, Tai has the option to make adjustments to the tariffs to make them more effective, according to a senior official.

National Economic Council director Lael Brainard praised Biden’s approach as “strategic, balanced, and targeted.” She emphasized that the call aims to protect the US from China’s attempts to undermine domestic steel production.

Brainard highlighted the importance of investing in American manufacturing while also safeguarding these investments and workers from unfair competition linked to China’s industrial excess capacity. She warned that China’s actions pose a significant threat to the future of the American steel and aluminum industry.

Brainard mentioned that the approach was created through collaboration with industry stakeholders and unions.

Biden pointed out the Department of Commerce's work to combat China's strategy of oversaturating the market with inexpensive goods using measures like anti-dumping and countervailing duties.

"They're not playing fair - they're cheating," Biden expressed his concerns about China. The impact of their cheating is being felt here in America.

Biden's recent trip follows his public opposition to a $14 billion deal for Japan's Nippon Steel to acquire US Steel. Although approved by US Steel shareholders last week, the deal still awaits clearance from the Justice Department and the Committee on Foreign Investment in the United States.

Biden emphasized in March the importance of US Steel staying American-owned and operated. He reiterated this message on Wednesday, stating that it should remain a completely American company.

He expressed his commitment to having US Steel be American-owned and operated by American union steelworkers, who are considered the best in the world. Biden promised that this vision would become a reality.

Officials reassured that the proposed tariffs would not necessarily cause inflation to rise.

A senior official emphasized that implementing the tariffs would prioritize safeguarding American jobs and the steel industry, rather than causing inflation to increase.

Residual inflation is not caused by goods, according to the official. Our trade actions are strategic and balanced, as stated by the official. President Biden will not impose ineffective, broad tariffs that would raise costs and hurt job opportunities. The official emphasized that imports of steel from China make up a small percentage of total US steel demand, around 0.6%, with no noticeable inflation impact. However, it is crucial for the US to stay ahead of China's increasing export activity and their ongoing pressure on prices, which puts American steel companies at a competitive disadvantage.

US consumers will end up bearing any tariffs on imports, not the country exporting the goods, resulting in potential price hikes.

Last month, the United Steelworkers, a prominent union for steel industry workers, announced their support for Biden's reelection campaign.

Biden is focusing on winning over voters who are unhappy with how President Trump has managed the economy in Pennsylvania. Recent polls indicate a tight race between Biden and Trump, with less than seven months left until Election Day.

Trump implemented tariffs against China as part of his economic approach, a move that Biden has not completely reversed despite facing criticism. By proposing a tariff increase to safeguard American workers, Biden is aiming to defend himself against Trump's accusations of being soft on China.

A potential increase in tariffs could jeopardize Biden's efforts to improve the strained relationship between the world's top two economies. China has refuted claims of having excess capacity and has accused the US of trying to hinder competition with protectionist trade policies. Biden has been working to mend ties with China, even holding direct talks with President Xi Jinping. Progress seemed to have been made this week when Defense Secretary Lloyd Austin had his first conversation with his Chinese counterpart in a year.

CORRECTION: This article has been updated to correct the location where Biden will give his speech on Wednesday.

CNN’s Chris Isidore, Arlette Saenz and Kevin Liptak contributed to this report.

Editor's P/S:

The article highlights President Biden's focus on strengthening the American steel industry and increasing pressure on China, particularly in the context of the upcoming presidential election. Biden's visit to Pittsburgh, a key battleground state, underscores his commitment to investing in domestic manufacturing and protecting American workers from unfair competition. The proposed tariff increase on Chinese steel and aluminum aims to safeguard the US industry from China's alleged overproduction and unfair practices. Biden's approach is seen as a balance between promoting fair competition and maintaining diplomatic ties with China. However, the potential impact of increased tariffs on inflation and consumer prices remains a concern.

The article also sheds light on Biden's efforts to portray himself as a champion of American workers and to contrast his policies with those of former President Trump. By focusing on the steel industry and addressing concerns about China's economic practices, Biden aims to appeal to voters who are dissatisfied with Trump's handling of the economy. The outcome of the upcoming election will likely hinge on Biden's ability to convince voters that his policies will deliver economic prosperity and protect American jobs, while balancing the need for cooperation with China on global issues.