President Joe Biden announced plans to triple tariffs on Chinese steel and aluminum imports to combat alleged unfair competition from Chinese companies.
There is currently a 7.5 percent tariff rate on certain steel and aluminum products under Section 301, which applies to Chinese-produced steel and aluminum. Biden is now asking the Office of the U.S. Trade Representative to consider raising the Section 301 tariffs to 25 percent. That increase would be on top of the 25 percent tariff on steel and 10 percent tariff on aluminum imposed by the Trump administration through Section 232, which covers most countries except for Canada and Mexico. While the increase on Chinese exports would be notable, the Wall Street Journal reports that it would affect only 0.6 percent of U.S. demand for steel.
“American workers continue to face unfair competition from Chinese imports of steel and aluminum products, which are among the world’s most emissions-intensive,” the White House said in a statement announcing the plan. “Chinese policies and subsidies for their domestic steel and aluminum industries mean high-quality U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions.”
The Biden administration further said the president was directing his senior team to work with Mexico to jointly prevent China and other countries from evading Section 301 and 232 tariffs by importing through Mexico into the United States.
Increases to steel and aluminum tariffs have been opposed by business and trade groups, including the U.S. Chamber of Commerce, and the North American Association of Food Equipment Manufacturers (NAFEM) and FEDA have advocated for the removal of Section 301 tariffs entirely. Combined, Section 232 and 301 tariffs accounted for $228.6 billion in duties paid by American businesses from 2018 through March 20, 2024, according to data from U.S. Customs and Border Protection.