Biden administration proposes tariff hikes on Chinese steel and aluminum. Aims to reshore manufacturing, balancing growth, environment, and geopolitics. Impact on industrial automation equipment/machinery market uncertain.

Omdia view

Summary

On April 17, 2024, the Biden administration called for the United States Trade Representative (USTR) decision to propose significant tariff increases on Chinese steel and aluminum imports, along with investigations into Chinese subsidies, underscoring concerns about the impact of Chinese imports on US industries. The Biden administration aims to prevent job losses and business closures by bringing manufacturing back to the region and striving to strike a balance between economic growth, environmental considerations, and geopolitical interests. What does this mean to the industrial automation equipment and machinery market?

Biden’s manufacturing vision

The Biden administration’s ambitious efforts to bolster US manufacturing, particularly in emerging sectors such as semiconductors, battery manufacturing, PV manufacturing, and electric vehicles (EVs), are commendable steps toward reducing the country’s dependence on Chinese imports. However, the financial viability of these industries is now threatened by a flood of Chinese exports, potentially resulting in job losses and business closures.

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