Some steelworkers worry that Europe's rush to reach an agreement could lead to the exclusion of domestic steel producers and union workers. This is because Biden has enjoyed the support of key swing states, which helped him get elected to the White House.
According to Scott Paul, president, Alliance for American Manufacturing, the Biden administration knows that lifting steel tariffs without a solution, especially beyond the dialogue, could lead to plant closures in Pennsylvania, Ohio, and other states where the impact would be felt both economically and politically.
Biden's political calculus
Biden sought to undo many of the policies that his predecessors had in place toward the rest of the world from his very first days in office. Biden has placed particular emphasis on reaffirming the U.S.'s global power and willingness to work with like-minded countries on issues ranging from global health to climate change.
He has not touched Trump's tariffs on aluminum and steel imports. Cabinet members have even praised them. Union pressure is one reason.
Biden will ultimately have to decide whether the benefit of the 137,200 steelworkers and ironworkers who worked in the country last fiscal year outweighs that of the 6.5 million people who, according to one estimate, need steel or aluminum to make the goods they produce. Many economists warn that steel tariffs may cause more job losses than they create.
One level, the steelworkers aren't a large number of voters, because there's not as many of them. But they are important voters, Todd Tucker, director for governance studies at Roosevelt Institute, a progressive-leaning think tanks.
You can see the geographic location of steel production's most prominent areas in Ohio, Pennsylvania, and other places. These districts are important in presidential years but also in some Senate races in 2022. Tucker said.
Raymond W Holman Jr. for Politico
His political identity has been shaped by his blue-collar roots. As he promised to boost U.S. manufacturing, and rebuild an economy devastated by the coronavirus epidemic, he leaned heavily on them in 2020's campaign in swing states such as Pennsylvania and Michigan.
In a questionnaire, Biden stated that he would support aluminum and steel tariffs until excess capacity in the world is reduced. However, he also promised to examine Trump's destructive and shortsighted approach to tariffs. Biden criticized his opponent for not addressing China's trade practices and for alienating foreign allies.
Biden stated to the union that while I will use tariffs when necessary, the difference between me, Trump, and Biden is that I will have an approach and a plan to use those Tariffs to win, and not to fake toughness.
His administration is eager to demonstrate its ability to deliver. Labor groups praised Biden for signing an executive directive just days after he took office, which requires federal agencies to purchase more U.S.-made products. In a speech this summer in Pennsylvania's Lehigh Valley, Biden highlighted those stricter rules with Mack Trucks made in America parked behind him.
Biden stated that he was here to discuss a commitment that is important to him and to our efforts to move forward. It's an easy solution: Grow more American-based businesses, place more Americans in union jobs, strengthen American manufacturing and secure critical supply chain.
Biden's bipartisan infrastructure bill has passed the Senate. This would be another win for labor unions, who were disappointed Trump didn't fulfill his infrastructure promises. The $550 billion package will unleash billions of dollars to build heavy infrastructure projects such as roads, bridges, and rail. U.S. steel producers and manufacturers stand to reap the benefits.
The infrastructure package could be a political cover for Biden, if it is approved, in the event that his tariffs decision disappoints steelworkers.
Thompson stated that Biden's campaign promise to invest heavily and promote the U.S. industrial sector was a hit with his members. However, these same members are sensitive about unfair trade practices by foreign steel producers in China or Europe. These countries have industry groups and labor unions that argue that overcapacity is a problem.
