In reaction to China’s export subsidies, the White House wants the rest of the world to put higher taxes on Chinese steel imports. This policy idea is meant to help states like Michigan that have a lot of steel industries.
The United States’ biggest trade enemy is now China. President Joe Biden’s office says this is mostly because the Chinese government won’t follow international rules for exports.
The Biden administration says that higher tariffs will cancel out the supports that China gives that make its steel cheaper on the world market. Gene Sperling, a top advisor to the White House, said that China’s subsidies hurt businesses and jobs in places like Michigan that make things.
According to Michigan Public Radio, it’s not because they make better, higher-quality goods, but because their government gives them so much money that they can keep prices cheap. “China has told us that exports are the best way to grow.” We are going to use the money we make from selling so much to other countries, including the US, to boost our economy.
Sperling said that the steel market is just one area where the government wants the rest of the world to react to the way China trades.
He said, “It’s clear that they’re doing the same thing with electric cars, too. We’ll have to do something about that too, but that will happen later.”
