FOX Business correspondent Lydia Hu has provided an update on a deal that is expected to enhance the strength and competitiveness of the steel industry.
President Biden is set to take action against China in order to safeguard the U.S. steel and shipbuilding industries, as stated by the White House.
On Wednesday, President Biden urged the U.S. Trade Representative (USTR) to triple the tariff rate on imports of Chinese steel and aluminum. Additionally, he called for an investigation into China’s unfair shipbuilding practices. The USTR is responsible for monitoring foreign governments’ compliance with trade agreements.
“The White House acknowledges the increasing concerns over unfair trade practices by China, specifically their strategy of flooding the market with steel at below-market costs. These practices have been identified as distortive to the global shipbuilding market and have a detrimental impact on fair competition,” stated the Biden-Harris Administration.
According to a petition submitted to the U.S. Trade Representative by five labor unions, there are concerns regarding Chinese acts, policies, and practices in the maritime, logistics, and shipbuilding sectors.
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The White House has revealed its plans to take action against China, with President Biden announcing measures that involve raising tariffs on steel and aluminum imports.
The White House emphasized the significance of American-made steel, stating that it continues to be crucial for our economic and national security.
According to a statement from the White House, steel plays a crucial role in our domestic shipbuilding industry. It is used in a variety of applications, from commercial shipping vessels that transport American products to U.S. naval vessels that ensure the safety of global seas. The commercial shipyards not only provide the necessary industrial capacity to maintain the U.S. Navy’s dominance but also support numerous suppliers and jobs.
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President Biden’s strategic trade and investment agenda aims to safeguard workers, consumers, and businesses against unfair competition. Additionally, it addresses the pressing issue faced by American workers in the steel and aluminum sectors due to Chinese exports of these products. It is noteworthy that steel and aluminum produced in China are among the most emissions-intensive in the world. The excessive capacity and non-market investments in China’s steel and aluminum industries pose a challenge for high-quality U.S. products, as they have to compete with artificially low-priced alternatives that result in higher carbon emissions.
The White House highlighted the significance of American-made steel on Wednesday, emphasizing its critical role in both the economic and national security of the country.
The Biden administration is implementing new measures to bolster American steel manufacturing and shipbuilding. As part of this effort, they are urging the USTR to triple the current tariff under Section 301 of the Trade Act.
Chinese imports under Section 301 currently have an average tariff rate of 7.5% for specific steel and aluminum products.
The White House has stated that Chinese policies and subsidies that support their steel and aluminum industries result in the production of low-priced alternatives that undercut the high-quality products of the United States. These Chinese alternatives are produced with higher emissions, posing a challenge to American manufacturers. In light of this, President Biden has called for the United States Trade Representative (USTR) to review Section 301 tariffs and explore ways to enhance their effectiveness. As part of this effort, the President is urging the USTR to consider tripling the tariffs on Chinese steel and aluminum products.
The average tariff on Chinese steel and aluminum products under Section 301 is currently 7.5%.
China finds a way to bypass the higher tariffs by engaging in trade with Mexico instead. They then rely on Mexico to import their goods into the United States.
The White House stated that it is crucial to tackle the escalating challenge of Chinese and other countries’ steel exports gaining entry into the U.S. market and circumventing the Section 232 or Section 301 tariffs. In line with this, President Biden dispatched senior members of his administration to Mexico to address this pressing issue.
