Stating that “American-made steel remains critical for our economic and national security” but that “American workers in the steel and aluminum industries face a significant challenge from Chinese exports,” President Biden announced April 17 that his administration is taking several new actions “to support American steel manufacturing and shipbuilding.”
Perhaps most notably, Biden is calling on the Office of the U.S. Trade Representative to consider tripling (to 22.5 percent) the existing Section 301 tariff rate on imports of Chinese steel and aluminum, to the extent that doing so is “consistent” with USTR’s ongoing, and long-delayed, review of existing Section 301 tariffs on Chinese goods. The potential impact of any such increase is unclear. While Biden said that China is “flooding the market with below-market-cost steel,” press reports noted that U.S. imports of Chinese steel (which are already subject to both Section 301 and Section 232 tariffs) account for less than one percent of domestic demand.
In addition, USTR has initiated a new Section 301 investigation into China’s unfair trade acts, policies, and practices in the shipbuilding, maritime, and logistics sectors, which a recent industry petition said are “far more aggressive and interventionist than any other country.” This investigation was requested last month by U.S. labor groups, who called on USTR to impose new fees on Chinese-built vessels that dock at U.S. ports instead of imposing additional tariffs on imports from China. USTR will hold a public hearing in connection with this investigation on May 29 and is accepting written comments through May 22.
Biden also said that his administration (1) is working with Mexico to prevent China and other countries from evading Section 301 and 232 tariffs on steel and aluminum by transshipping such goods through Mexico and (2) has imposed more than 30 antidumping and countervailing duty orders on steel-related products since taking office.
Copyright © 2024 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.