US mulling to increase tariffs threefold on Chinese steel, aluminum imports

The White House announced on 17 April, 2024 that it will ask the Office of the United States Trade Representative (USTR) to triple the tax rate under "Trade 301" on steel and aluminum imported from China. On the same day, the USTR announced that it would begin a study of China's shipbuilding, shipping, and logistics. It is a form of policy that is conscious of labour unions such as the United Steelworkers (USW).

At present, the average import duties on steel and aluminum under Article 301 targeting China stand at 7.5%. The White House highlighted that Chinese steel and aluminum, aided by policies and subsidies that artificially deflate prices and carry significant environmental consequences, are displacing superior US products. As a response, it proposes tripling the tax rate under Section 301 and emphasises the need for enhanced efficacy.

The USTR started looking into China's shipbuilding, shipping, and logistics sectors after receiving a petition from five labour unions, including the USW, in March. These unions claimed that China was using unfair and non-market-based policies and practices to control the maritime industry. USTR Representative Catherine Tai assured a thorough investigation into the unions' concerns.

The White House announced that the Department of Commerce has enforced over 30 anti-dumping (AD) and countervailing duty (CVD) measures concerning steel. Currently, 27 AD investigations are underway. They emphasised recent efforts to curb steel and aluminum imports from China and other nations via Mexico, including sending a senior official to Mexico. Additionally, the White House pledged support for six green steel production projects, allocating up to $1.5 billion under the Inflation Reduction Act.

In March, the U.S. Department of Energy revealed plans to subsidize capital expenses, including those of Cleveland-Cliffs, which intends to transition from blast furnaces to electric furnaces in Middletown, Ohio. The White House reiterated this commitment, highlighting support for Cliffs' Butler plant in Pennsylvania, known for producing directional electrical steel sheets. The Biden administration's efforts underscore its focus on promoting Pennsylvania and Ohio, pivotal swing states in presidential elections, given their robust steel industries.