Article Summary –
US President Joe Biden has raised tariffs on some imported goods from China, including steel, aluminium, semiconductors, and various other products. The move is aimed at curbing China’s unfair trade practices which Biden says have pushed other manufacturers out of business and caused job losses in the US. Alongside this, the Biden administration is also investing in domestic production capacity, particularly in clean energy and semiconductor sectors.
Biden Raises Tariffs to Curb China’s Unfair Trade Practices
On May 14, President Biden enacted higher tariffs on certain imported goods, aiming to counter China’s unfair trade practices. Steel, aluminum, semiconductors, electric vehicles, battery components, solar cells, ship-to-shore container cranes, and medical products are affected.
President Biden stated that China uses heavy subsidies to produce more than the global market can absorb, and then dilutes the market with excess, unfairly cheap products. Chinese imports led to closure of steel mills in Pennsylvania and Ohio.
The increased tariffs are implemented under Section 301 of the Trade Act of 1974. This act empowers the federal government to adjust tariffs if a foreign government takes actions that burden American commerce.
Commerce Secretary Gina Raimondo supports this strategic approach to protect critical U.S. industries, such as clean energy and semiconductors. The United Steelworkers union also applauded this move.
Alongside increased tariffs, the Biden administration is prioritizing federal investment in domestic production capacity, especially in clean energy and semiconductors. Biden has approved the CHIPS and Science Act, which provides semiconductor growth subsidies, and the Inflation Reduction Act, which includes over $115 billion for clean energy.
Since Biden’s tenure, at least $4 billion in private manufacturing investment in Pennsylvania has been announced. This includes funds for electric vehicles, clean energy, and semiconductors.
Previous President Trump’s widespread tariffs on goods from multiple countries led to a trade war with China, resulting in higher prices for consumer goods and restricted export opportunities for American farmers. A 2021 study noted that this trade war resulted in the loss of 245,000 American jobs. Bureau of Labor Statistics data shows a recovery of 770,000 manufacturing jobs since Biden assumed office.
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