US President urged to toughen tariffs on metal imports from China
The Can Manufacturers Institute (CMI) has called for a substantial stiffening of tariffs on some Chinese imports to the US, arguing that cheap tinplate and aluminium components and products from the Asian giant is threatening domestic canmakers.
The organisation, which represents canmakers and their suppliers in North America, also said that US President Joe Biden’s call for increased tariffs on Chinese imports of steel and aluminium “doesn’t go far enough”.
“The US metal can industry is threatened by steel and aluminium finished products from China, such as canned foods and the metal components to make cans,” said CMI president Robert Budway. “The Biden administration needs to take action now to save US union jobs in the metal can and canned food industry by raising the meagre duties on Chinese-made aluminium and steel can products before it is too late.”
At risk, says the CMI, is a North American industry that it estimates generates US$15.7 billion in economic activity and employs 28,000 workers to produce more than 130 billion cans a year. Critics argue that the Chinese government is subsidising its domestic metals industry so that it can compete on price in overseas markets.
While there have been concerns among canmakers about the cost implications of tariffs on raw materials, the country’s aluminium trade body The Aluminium Association said “targeted tariffs on Chinese imports remain appropriate given continued excessive subsidies from the government” in China.
Shortly after the CMI’s statement, Biden called on the US trade representative Katherine Tai to “consider tripling” tariffs on steel and aluminium imported from China.
Speaking at a campaign rally at the United Steelworkers Union headquarters in Pittsburgh, Pennsylvania, a city famous for its steel-making background, Biden said the flood of cheap steel and aluminium from China represented unfair competition that was undercutting domestic production.
“They’re not competing, they’re cheating,” he said, adding: “I want fair competition with China, not conflict”.
Tai is shortly due to complete a four-year review of China’s trade practices and the tariffs imposed by former president Donald Trump on imported aluminium and steel, which stand at 7.5%.
Biden also said the government is in talks with officials in Mexico to end China’s practice of exporting steel and aluminium to the US through Central America to avoid tariffs imposed on direct imports.
“Without action by the Biden administration, these vital industries will experience continued economic harm from imported products from China,” the CMI said.
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