FX.co ★ Biden to hike tariffs on Chinese steel imports

US President Joe Biden is set to raise import tariffs on Chinese steel and aluminum, aiming to bolster the American industry amid economic strategic considerations. This move comes as the US industry faces an increasing need for protection, according to US media. In a significant appearance, President Biden will address members of the United Steelworkers union in Pittsburgh on Wednesday. His speech is anticipated to reinforce his commitment to keeping United States Steel Corp. under American control, particularly as it plays out in the city where the company's headquarters is located. Adding an international dimension to the unfolding drama, in December 2023, Japan's Nippon Steel agreed to acquire US Steel for $14.1 billion in cash, a deal that includes a modest debt premium of only $800 million. The transaction is expected to close by the third quarter of 2024. Meanwhile, Biden has directed his focus towards US Trade Representative Katherine Tai, urging serious consideration of a significant increase in tariffs on certain types of Chinese steel and aluminum. The current tax, which ranges from zero to 7.5%, could be raised to 25%, a rate that has become something of a standard. To further intensify matters, Katherine Tai has initiated an official investigation into China's shipbuilding industry, suggesting a comprehensive approach to the issue. Lael Brainard of the National Economic Council summarized the administration's stance, noting, "The President understands the need to invest in American manufacturing and to protect these investments and workers from Chinese industrial power." This strategy not only aims to safeguard American jobs but also to unify the nation against China's industrial capabilities. Bloomberg experts note that these tariff adjustments will impact a relatively narrow segment of the American market. Imports of steel and aluminum from China in 2023 were quite modest, totaling less than $1.7 billion.