President Biden's new trade deal with the European Union will guarantee that the U.S. continues to have a constant supply of steel and aluminum while battling economic pressures from China, according to an op-ed piece by Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai.
According to the Economic Policy Institute, the steel sector currently employs over 2 million Americans, with average wages that are 27% more than the median income for males and 58% higher than the median income for females. However, China has been overproducing steel and aluminum, driving down their costs and hurting the US economy, which lost 16,000 steel jobs between January 2015 and October 2016, the op-ed said.
“China has been flooding global markets with its cheap steel and aluminum, artificially lowering prices, and making it impossible for America’s steel and aluminum industries to compete,” the op-ed said.
The op-ed also states that the Trump administration's tariffs on steel and aluminum imports from U.S. allies have negatively affected economic relations, as evidenced by the EU's intention to implement 50% retaliatory tariffs on American brands such as Harley Davidson, Levi's Jeans, and the Kentucky Bourbon industry by Dec 1.
"No business could have survived that," the op-ed said. "When President Joe Biden came into office, he was clear that we had to find a solution that would protect the U.S. steel and aluminum industries and the American workers they employ, while also repairing and strengthening our relationship with the European Union one of our most trusted partners and supporting the export of American-made products."
According to Biden's agreement with the EU, the U.S. would accept steel and aluminum as long as these metals are exclusively made in the EU.
The trade agreement also aims to establish the world's first carbon-based sectoral agreement on steel and aluminum trade in an attempt to combat the dangers posed by climate change. Steel produced in China is amongst the world’s dirtiest in terms of emissions, the op-ed said.
"This agreement is a huge win for American workers, farmers, businesses, families, and the environment," the op-ed said. "It will protect good-paying union jobs, lower prices for consumers, maintain our competitiveness, and reduce emissions."
