‘No trade war,’ says Biden, pushing to triple tariffs on Chinese steel
US President Joe Biden said Wednesday there was no trade war with Beijing, despite calling for a tripling on tariffs for Chinese steel and aluminium.
Biden's call comes as the US Trade Representative (USTR) announced it is launching a probe into China's trade practices in the shipbuilding, maritime and logistics sectors, prompting a furious reaction from Beijing.
He is preparing to address steelworkers in Pittsburgh, the second day of a three-day trip through the crucial swing state of Pennsylvania.
Biden and his election rival Donald Trump are competing for vital blue-collar voters, promising to revive American manufacturing.
"Chinese policies and subsidies for their domestic steel and aluminum industries mean high-quality US products are undercut by artificially low-priced Chinese alternatives produced with higher emissions," the White House said in a statement.
A senior US official told reporters that China accounts for about half of global steel production, while exporting the metal at a significantly lower cost than US steel prices.
As the USTR reviews tariffs imposed on China during Trump's administration, Biden is urging to triple an existing rate under Section 301 of the Trade Act.
Currently, the average tariff on steel and aluminum under this section is 7.5 percent.
Primary tool
The so-called Section 301 investigation was the primary tool the Trump administration used in the trade war with China to justify tariffs.
The White House added on Wednesday that Biden is also directing officials to work with Mexico to prevent tariff evasion by China.
But the president told reporters he is not seeking a new trade war.
"No trade war," he said when asked by reporters if he was worried about the potential for a standoff with Beijing during a stop in his hometown of Scranton, Pennsylvania.
Meanwhile, the USTR investigation into shipbuilding and other sectors comes after a petition last month by unions including the United Steelworkers.
They asked for action to address "unreasonable and discriminatory" policies and practices used by Beijing to dominate these industries