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US President Joe Biden is pushing for a tripling of tariffs on Chinese steel and aluminum as he seeks to shore up support for unions in the swing state of Pennsylvania.
At a meeting with members of the United Steelworkers union in Pittsburgh on Wednesday, Biden will call on trade representative Katherine Tai to triple tariffs on imports from the current average of 7.5 percent.
Biden’s campaign is trying to shore up support among union workers ahead of November’s U.S. presidential election, in which Pennsylvania could play a decisive role.
“It is important for us to anticipate the renewed surge in Chinese exports and their continued pricing pressure that makes it difficult for U.S. steel companies to compete,” said a senior U.S. official, who added that these actions had “no impact.” nothing to do with the elections. “.
Tai is close to completing a statutory review of tariffs that former President Donald Trump imposed as part of his trade war with China.
She is also expected to unveil an investigation into unfair practices in China’s shipbuilding industry on Wednesday, following a petition from the United Steelworkers Union.
The US official argued that because Chinese steel imports were “quite small” (0.6% of total US steel demand), there would be little impact on the inflation, a key election concern for Biden.
“We must invest in America’s manufacturing industry, but we must also protect those investments and workers from unfair exports associated with China’s industrial overcapacity,” said Lael Brainard, White House national economic adviser.
Treasury Secretary Janet Yellen raised the issue of Chinese overcapacity during a visit to Beijing this month.
Chinese export volumes rose 14 percent year-on-year in the first quarter, even as their value fell 12 percent, according to Morgan Stanley.
The Biden administration’s decision to raise tariffs is likely to affect recent efforts by Washington and Beijing to stabilize relations, which last year fell to their lowest level since the establishment of relations diplomatic relations between the two countries in 1979.
The Pittsburgh announcements come as the Biden campaign seeks to defeat Trump in Pennsylvania, who was decisive in previous elections.
Biden voiced opposition a month ago to Japan’s Nippon Steel Group’s proposed acquisition of US Steel, in what was seen as a political move that upset Japan, a key ally.
Trump has previously emphasized that he would block Nippon Steel’s proposed $14.9 billion bid for US Steel.
Biden, born in Scranton, Pennsylvania, spent more time campaigning for re-election in that state than any other.
Trump beat Hillary Clinton in Pennsylvania by less than a percentage point in 2016. Four years later, Biden beat Trump by just over a point. A RealClearPolitics average of state opinion polls shows Biden and Trump are statistically tied in the state.
The White House said Biden directed his team to work with Mexico to ensure China cannot evade U.S. tariffs by exporting steel to the United States through Mexico.
The decision on steel imports and the investigation into Chinese shipbuilding are the latest steps taken by the Biden administration to combat what Washington considers unfair economic practices or to address national security concerns.
In February, Biden ordered an investigation into Chinese “connected vehicles” to determine whether they would allow the Chinese government to access data that smart cars collect on their drivers.
