In letter, Senators Casey and Brown raise concerns about potential reductions in Section 232 and 301 tariffs
Senators: “These tariffs are essential to level the playing field for American workers to compete and counter unfair trade practices by China”
Tariffs have been in effect since 2018, currently under review and negotiations
Washington, D.C. - Today, U.S. Senators Bob Casey (D-PA) and Sherrod Brown (D-OH) sent a letter to President Joe Biden sharing concerns about reductions in Section 301 tariffs, which are currently under interagency review by the Biden Administration. In the letter, the Senators cited the tariffs as an important means of combating anticompetitive behavior by China and other nonmarket economies. The letter also shared similar concerns about reductions Section 232 tariffs, as well as related actions that would undermine American steel and aluminum producers as a result of negotiations with the European Union on the Global Arrangement on Sustainable Steel and Aluminum.
“These tariffs are essential to level the playing field for American workers to compete and counter unfair trade practices by China, which seeks to circumvent our trade laws, steal American technology, and cheat and bully its way to global economic dominance,” wrote the Senators. “We urge the Administration to maintain the Section 301 and Section 232 tariff regimes as we continue our work with partners and allies to forge a sustainable approach to trade policy that supports American workers and fair global economic competitiveness.”
Section 301 tariffs were instituted by the Trump Administration in 2018 on goods imported from China in response to its unreasonable and discriminatory policies and practices regarding technology transfer, intellectual property, and innovation. At the time, Casey applauded the tariffs for leveling the playing field. He also praised the Section 232 tariffs on steel and aluminum, which were also imposed in 2018 on national security grounds, following an investigation by the U.S. Department of Commerce.
A 2022 report from the United States Trade Representative on China’s compliance with the World Trade Organization underscored that the underlying economic reasons and market conditions for why the tariffs were imposed have not changed. In addition, a March 2023 report from the United States International Trade Commission (USITC) showed that Section 301 and 232 tariffs led to significant increases in domestic production in the tariffed industries that were analyzed. In the letter, the Senators referenced these reports and advocated for keeping the tariffs in place.
During the Biden Administration, Senators Casey and Brown have fiercely advocated for keeping tariffs in place to protect American workers. In 2021, Casey and Brown applauded the Administration for an agreement with the European Union on steel and aluminum tariffs. Earlier this year, the Senators urged President Biden to rescind the suspension of market-balancing tariffs on Chinese solar product importers in four southeast Asian countries to level the playing field for American manufacturers and workers.
Read the full letter here or below:
Dear President Biden:
As your Administration concludes the interagency review on Section 301 tariffs, we write to share our serious concerns about reductions in the tariffs that will enable China and other global competitors to resume their anti-competitive activities without consequences. While not the subject of interagency review, we share similar concerns about reductions in 232 tariffs, as well as related actions that would undermine American steel and aluminum producers as a result of negotiations with the European Union on the Global Arrangement on Sustainable Steel and Aluminum.
These tariffs are essential to level the playing field for American workers to compete and counter unfair trade practices by China, which seeks to circumvent our trade laws, steal American technology, and cheat and bully its way to global economic dominance. We urge the Administration to maintain the Section 301 and Section 232 tariff regimes as we continue our work with partners and allies to forge a sustainable approach to trade policy that supports American workers and fair global economic competitiveness.
In 2018, following an investigation by the United States Trade Representative (USTR), Section 301 tariffs were imposed on goods imported from China in response to its policies and practices regarding technology transfer, intellectual property, and innovation. The investigation concluded that the Chinese government’s trade policies were unreasonable, discriminatory, and created trade barriers for United States commerce. Section 232 tariffs on steel and aluminum were also imposed in 2018 following an investigation by the U.S. Department of Commerce on national security grounds. A 2022 report from USTR on China’s compliance with the World Trade Organization only underscores that the underlying economic reasons and market conditions for why the tariffs were imposed have not changed.
According to a March 2023 report from the United States International Trade Commission (USITC), Section 301 and 232 tariffs led to significant increases in domestic production in the tariffed industries that were analyzed. In addition, according to the American Iron and Steel Institute, the imposition of Section 232 tariffs incentivized new capital spending by domestic steel makers, with announced investments of nearly $22 billion in new, expanded, or restarted production since March 2018.
The United States should be taking control of its future by investing in American workers and communities, revitalizing domestic manufacturing and industry, and combatting the growing threat posed by China and other nonmarket economies. The Chinese government has undermined U.S. industrial markets by expanding subsidies for steel, aluminum, semiconductors, solar panels, transportation, and other critical infrastructure. From forced labor to currency manipulation and dumping and circumvention, the Chinese government does not play by global rules-based order. The U.S. should consider the Chinese government’s long-standing practice of using economic coercion and supply chain retaliation as a geopolitical weapon when taking action that could undermine efforts to shore up our domestic manufacturing and supply chains.
Thank you for your attention to this important matter. We look forward to working with you to protect workers and communities, revitalize domestic manufacturing and industry, safeguard our national and economic security, and confront the threat posed by the Chinese government and other nonmarket economies.
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