President Biden has taken a page from Donald Trump’s playbook by proposing a triple tariff increase on Chinese steel in an effort to protect American jobs.
In a speech at the United Steelworkers headquarters in Pittsburgh, Biden called on his administration to consider tripling the current tariff on Chinese steel, which currently stands at an average of 7.5%. This move reflects a surprising shift in the president’s stance on China, which he heavily criticized during his 2020 campaign.
Biden’s reversal of his previous position on China is a clear indication that he recognizes the successes of Trump’s tough trade policies. During the campaign, Biden claimed that Trump’s trade policy with China had only hurt American farmers, manufacturers, and consumers.
Back in 2020, Biden stated of Trump’s policies:
“President Trump may think he’s being tough on China. All that he’s delivered as a consequence of that is American farmers, manufacturers, and consumers losing and paying more,” Biden said. “His economic decision-making is so shortsighted and as shortsighted as the rest of his foreign policy.”
However, it seems that the president has had a change of heart after witnessing the positive impact of Trump’s policies on the American economy. This move also demonstrates Biden’s acknowledgment that getting tough on China is necessary for the United States to maintain a strong bargaining position.
While Biden previously advocated for strengthening ties with China, he now recognizes the need to stand firm against the Communist-run country. He acknowledges that a united front by the world’s two largest economies would give the US substantial leverage to shape future policies on important issues such as the environment, labor, trade, technology, and transparency. This is a stark contrast to his earlier stance, where he believed that the US needed to work with China in order to achieve its goals.
The Biden administration’s shift in trade policy also comes as former President Trump has been making inroads with traditionally Democratic labor unions. The Teamsters Union, a staunch supporter of the Democratic party, recently made its largest donation of $45,000 to the Republican National Committee. This move reflects unions’ growing dissatisfaction with the current administration’s policies and indicates a potential shift in their support towards the Republican party.
Furthermore, the Biden administration’s Department of Justice has announced an antitrust investigation into the potential sale of U.S. Steel to Japanese-based Nippon Steel Corporation. This move has sparked protests from labor leaders in the steel industry, who fear that it could have negative impacts on the US and Japan’s relationship.
