Biden Pledges to Block US Steel Acquisition and Triple Tariffs on Chinese Imports

President Joe Biden has announced his administration's intention to block the acquisition of US Steel by Japanese company Nippon Steel, and to triple tariffs on Chinese steel and aluminum imports to 25%. The pledges were made during a speech to steelworkers at the United Steelworkers Union headquarters in Pittsburgh, Pennsylvania.

Biden argued that it is vital for US Steel to remain an American-owned and operated company, stating that the iconic name, products, and headquarters should continue to be based in the United States. The president also emphasized the need to protect American manufacturing and workers from unfair trade practices by China.

The White House said the administration will pursue investigations against countries and importers trying to circumvent the existing tariffs on Chinese steel by shipping through other countries. Biden's announcement was cheered by US steelmakers, who have accused China of disrupting global markets through subsidies and dumping.

Why this matters: The move reflects Biden's efforts to appeal to working-class voters in the key battleground state of Pennsylvania ahead of the upcoming election. It also signals a more confrontational approach towards China by the Biden administration, which could make it harder for the US to gain China's help on issues like the crises in Ukraine and the Middle East.

China has expressed dissatisfaction and firm opposition to the US investigations into its maritime, logistics, and shipbuilding sectors, as well as the claims about steel and aluminum, stating that the accusations have "no factual basis". Experts suggest that China may impose countermeasures through countervailing duties against US firms, and that the tariffs could signal the start of a new and rapidly escalating round of trade retaliation between the US and China.

The tariff announcement is also viewed as a negotiation tactic by the US, with the potential to be used as leverage by Secretary of State Blinken during his upcoming visit to China. However, some analysts remain optimistic that the visit will still go ahead, as both sides are likely to continue engaging despite the tensions.

Key Takeaways

• Biden to block Nippon Steel's acquisition of US Steel, triple tariffs on Chinese steel.
• Biden argues US Steel should remain American-owned to protect US manufacturing and workers.
• US to investigate countries circumventing tariffs on Chinese steel through other countries.
• Tariffs could signal new trade war between US and China, with potential countermeasures.
• Tariffs may be used as leverage by US in upcoming talks, but engagement likely to continue.