Biden Takes Aim at China’s Steel Industry: Proposes 25% Tariff for Unfair Subsidies

President Joe Biden sharply criticized the substantial subsidies received by Chinese steel companies as “cheating” on the 17th (local time).

President Biden made these remarks during a speech in front of workers from the United Steelworkers (USW) union in Pittsburgh, Pennsylvania, a critical battleground state in the presidential election.

At this event, he said, “China’s steel companies don’t need to worry about making a profit. They’re not competing; they’re cheating, and we’ve seen the damage here in America.”

He further criticized that “the prices are unfairly low because Chinese steel companies don’t need to worry about making a profit because the Chinese government is subsidizing them so heavily.”

The average tariff on Chinese steel and aluminum products is around 7%. However, President Biden recommended a direct advisory tariff rate of 25% on this day.

Moreover, President Biden opposed the sale of US Steel to Japan’s Nippon Steel on the same day.

He stated that US Steel should remain completely an American company. US Steel was founded in Pittsburgh in 1901 and has been part of the manufacturing industry that grew along with America’s rise to a superpower.

Nippon Steel, the world’s fourth-largest steelmaker, announced plans last year to acquire US Steel for about $16 billion. Still, the acquisition faces challenges amid negative public opinion and opposition from labor groups in the U.S.

President Biden’s actions are interpreted as an effort to protect the domestic steel industry and convey this message to voters, mindful of winning votes in the battleground state of Pennsylvania in the November presidential election.