US announces an increase in tariffs on Chinese steel and aluminum to 25%

The White House notes that these actions are intended to protect the American steel industry

U.S. President Joe Biden has instructed the U.S. Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion worth of imports from China. This is stated in a statement by the White House.

This step includes an increase in the tariff rate on certain steel and aluminum products of Chinese origin from 0.0-7.5% to 25% in 2024.

According to the statement, U.S. workers continue to face unfair competition from China’s non-market overcapacity in steel and aluminum production, which is among the most carbon-intensive in the world.

«China’s policies and subsidies for their domestic steel and aluminum industries mean high-quality, low-emissions U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions,» the White House said.

These actions will protect the US steel and aluminum industries from China’s unfair trade practices.

In addition, in 2024, the tariff rate on Chinese electric vehicles will quadruple from 25% to 100%, and the tariff on solar cells (regardless of whether they are assembled into modules or not) originating in China will double from 25% to 50%.

The American Iron and Steel Institute (AISI) welcomed Biden’s decision. AISI President Kevin Dempsey noted that China continues widespread unfair trade practices that harm American steel producers and key steel-consuming industries such as the auto industry.

China’s Ministry of Commerce said that Beijing opposes the US tariff hike and will take measures to protect its interests.

Earlier, associations representing US steelmakers supported the US President’s call to triple the Section 301 tariff rate on steel imports from China and further investigate the possibility of circumvention.