Tip Sheets

Steel industry protectionism beyond typical election-year rhetoric

Media Contact

Adam Allington

President Biden has announced plans to triple the rates of tariffs on steel and aluminum from China amid pressure from labor unions concerned about the survival of the U.S. steel industry amid Chinese competition.


Allen R. Carlson

Associate professor of government in the College of Arts & Sciences

Allen Carlson is an associate professor of government at Cornell University, and an expert on Chinese foreign policy. Carlson says it’s crucial to note that President Biden’s tariff proposal is less about economics and more related to U.S. domestic politics.

Carlson says:

“Presidential election years tend to stir things up in the U.S.-China relationship, even when the two countries are on relatively good terms with each other. 2024 is not such a time.

“In the past Beijing has tended to take shifts in U.S. policy during election years with a grain of salt. But this year may be different as Xi’s China is in a stronger position than it was before. More importantly, this election cycle promises to be more turbulent than any that has come before it. And China policy will inevitably get drawn into the maelstrom.”

Nancy Chau

Professor, Dyson School of Applied Economics and Management

Nancy Chau is a professor of economics at Cornell University with research interests in international trade, regional economics, and economic development. She says protectionist measures against Chinese steel imports run the risk creating other downstream impacts.

Chau says:

“The effects of tariffs on steel and aluminum in the United States are double-edged. While the motivations may have been to protect workers in directly import-competing sectors, workers in other sectors that rely on imported steel and aluminum imports, including new and green industry jobs, can be adversely impacted.

“Other follow-on effects can include retaliatory responses that in the past have affected a diverse range of industries including agriculture, in particular. Since China is a top exporter of steel and aluminum products to the U.S., and a top export destination of U.S. agricultural products, the direct, supply-chain, and retaliatory effects of any proposed tariffs warrant balanced and careful considerations.”  

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