WASHINGTON: US President Joe Biden said Wednesday there was no trade war with Beijing, despite calling for a tripling on tariffs for Chinese steel and aluminum.
Biden’s call follows the US Trade Representative’s (USTR) decision to launch a probe into China’s trade practices in the shipbuilding, maritime, and logistics sectors, triggering a sharp response from Chinese authorities.
Addressing steelworkers in Pittsburgh during a visit to Pennsylvania, Biden underscored the importance of combating Chinese policies and subsidies that undercut American steel and aluminum industries.
Highlighting China’s dominant role in global steel production and its practice of exporting metal at significantly lower costs, a senior US official revealed plans to triple the existing tariffs under Section 301 of the Trade Act.
While stressing the need for stronger action against unfair trade practices, Biden dismissed concerns of escalating tensions into a full-blown trade war, affirming his commitment to protecting American manufacturing interests.
The USTR investigation into China’s trade practices was initiated in response to a petition filed by unions, including the United Steelworkers, alleging “unreasonable and discriminatory” policies used by Beijing.
Trade Representative Katherine Tai pledged to conduct a thorough investigation into the unions’ concerns, emphasizing the need to address distortions in various sectors caused by China’s trade practices.
The White House’s stance on protecting American steel interests received support from industry groups, including the Alliance for American Manufacturing (AAM), which endorsed Biden’s move to triple tariffs and initiate the probe into the shipbuilding industry.
Meanwhile, Treasury Secretary Janet Yellen reiterated the US’s commitment to combatting unfair trade practices during her recent trip to China. She emphasized the need to address excess capacity and market distortions caused by Chinese exports.
