The Biden administration on Tuesday directed the U.S. Trade Representative to increase the tariff rate on certain steel and aluminum products imported from China to 25% in 2024, up from the current level of up to 7.5%. The Can Manufacturers Institute has advocated for increases but says this latest step still doesn’t go far enough.
The changes apply to tariffs under Section 301 of the Trade Act of 1974. The announcement comes about a month after Biden called on the USTR to consider tripling the rate for certain tariffs on such imports.
“American workers continue to face unfair competition from China’s non-market overcapacity in steel and aluminum, which are among the world’s most carbon intensive,” the White House’s fact sheet states. “China’s policies and subsidies for their domestic steel and aluminum industries mean high-quality, low-emissions U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions. Today’s actions will shield the U.S. steel and aluminum industries from China’s unfair trade practices.”
After making a public push in recent months for raising tariffs, CMI says the 301 duties on canned foods and metal can components would still need to increase at least to a 200% duty level.
“Imports of China-made steel and aluminum can components and canned food are harming metal can makers and canned food producers,” CMI President Robert Budway said in a statement Wednesday. “CMI continues to press the Biden administration to accept its request and substantially increase the 301 duties on these articles.”
In a March letter to the USTR, CMI urged increases on Chinese imports of steel and aluminum cans, steel and aluminum ends for food and beverage cans and filled food cans. Unless tariffs on these products rise, “our industry will not be able to compete with imports of finished can products made using massively subsidized Chinese steel and aluminum inputs,” CMI wrote. CMI cited a January determination by the U.S. Department of Commerce that China “heavily subsidizes” tin mill steel products, and that Chinese producers “dump” this steel into the United States.
The Aluminum Association has “long advocated” for tripling Section 301 tariffs for various aluminum imports from China, and in a social media post called Tuesday’s announcement “a win for the U.S. aluminum industry” and its workers.
“Unfortunately, China continues to engage in significant unfair trade activities, including massive state subsidies which hurt U.S. manufacturing and global carbon reduction efforts. This targeted tariff action by the Biden administration will help to counteract some of these challenges,” the association wrote.
