Biden’s Call for More Steel Tariffs Is Economically Ineffective Political Pandering
Just four days ago, the Biden administration launched a new line of attack against former President Donald Trump and his campaign trail promise to hike tariffs if he is elected in November.
Those higher tariffs would be “inflation-feeding welfare for the rich” that would raise prices for consumers, according to an Axios summary of a White House memo. The shift in messaging, The New York Times reported, was an attempt at “recalibrating” Biden’s economic message in the face of stubbornly high inflation and the persistent sense among voters that the economy is not doing well. In effect, this is an attempt to remind voters that Trump’s economic plans include the deliberate goal of artificially inflating prices—because that’s what tariffs do.
On Wednesday, President Joe Biden called for hiking tariffs.
During a visit to visit today the United Steelworkers union headquarters in Pittsburgh, Pennsylvania, Biden said he would move to “triple the tariff rate on both steel imports and aluminum imports from China” if a new Commerce Department investigation finds that China is selling steel to America at what Biden called “unfair” low prices. Biden also reiterated his opposition to U.S. Steel’s purchase by Japan-based Nippon Steel, saying that the American-based firm should remain “American-owned, American-operated.”
Earlier in the day, the White House officially announced that it was aiming to triple some existing tariffs on steel and aluminum imported from China, from 7.5 percent to 25 percent. These higher tariffs would be separate (and in addition to) the 25 percent tariffs on steel and 10 percent tariffs on aluminum that then-President Donald Trump imposed in 2017 via a different law that grants presidents the authority to raise tariffs for ostensible “national security” reasons.
With the announcement, Biden has pulled off an impressive set of own goals. Not only does the call for higher tariffs undermine his own campaign’s attack on Trump’s plans to hike tariffs, but it also underscores Biden’s willingness to play favorites with economic policy, seemingly without regard for those who will face higher prices as a result. Remember, higher tariffs meant to protect one industry create higher costs down the supply chain. A promise to raise tariffs to p
Article from Latest
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.