Biden vows to block US Steel acquisition by a Japanese company and promises tariffs on Chinese steel

PITTSBURGH (AP) — President Joe Biden promised cheering unionized steelworkers on Wednesday that his administration would block the acquisition of U.S. Steel by a Japanese company and he called for a tripling of tariffs on Chinese steel, seeking to use trade policy to win over working-class votes in Pennsylvania, an election-year battleground.

Biden said during a visit to the headquarters of the United Steelworkers union that U.S. Steel “has been an iconic American company for more than a century and it should remain totally American.”

“American-owned, American operated by American union steelworkers — the best in the world — and that’s going to happen I promise you,” the Democratic president said.

His administration is reviewing the proposed acquisition by Japan’s Nippon Steel. Biden said last month he would oppose the deal, saying it was “vital for it to remain an American steel company that is domestically owned and operated.”

But in front of a pro-union audience, he went far further. “The backbone of America has a steel spine,” Biden said.

In another move that his administration argues can protect domestic steelworkers, Biden is pushing for the higher tariffs on Chinese steel and aluminum, aiming to insulate American producers from a flood of cheap imports.

While the announcements reflected the intersection of Biden’s international trade policy with his reelection effort, the White House insisted they were more about shielding American manufacturing from unfair trade practices overseas than firing up a union audience.

The current tariff rate is 7.5% for both steel and aluminum but could climb to 22.5%. Biden said he was asking his trade representative to raise the tariffs.

The administration also promised to pursue investigations against countries and importers that try to saturate existing markets with Chinese steel and said it was working with Mexico to ensure that Chinese companies cannot circumvent the tariffs by shipping steel there for subsequent export to the United States.

“The president understands we must invest in American manufacturing. But we also have to protect those investments and those workers from unfair exports associated with China’s industrial overcapacity,” White House national economic adviser Lael Brainard said.