Australian Iron Ore Exports Unaffected by Biden’s Tariff Proposal
US President Joe Biden has proposed increasing the current average tariff rate for steel from 7.5 percent to 25 percent.
Australian iron ore exports are expected to remain unaffected by President Biden’s proposal to triple the 7.5 percent tariff rates on Chinese steel imports to protect the industry from unfair practices.
A spokesperson from Fortescue reassured, “We do not anticipate any impact on Australian iron ore exports from the proposed tariffs by the United States on Chinese steel imports.”
They further mentioned that the demand for steel in China is strong due to growth in manufacturing, infrastructure, and renewable energy investments.
Lawrence Zhang, a consultant at Wood Mackenzie, supported this view, stating, “The US tariff increase on Chinese steel is unlikely to have a significant effect due to the small volume of exports to the US.”
Under Biden’s proposal, the tariff rate for steel could increase to 25 percent, with an additional 10 percent tariff on aluminum.
President Biden emphasized the need for fair competition with China, citing concerns about unfair practices that impact American workers in industries like shipbuilding.
Treasury Secretary Janet Yellen also raised similar concerns about China’s overcapacity in clean energy products potentially affecting global markets.
In response to petitions filed by unions, the Biden-Harris administration promised to investigate China’s trade practices in shipbuilding and logistics.
Despite claims by US officials, China’s Foreign Ministry Spokesperson defended China’s steel production, stating that allegations of overcapacity harming global markets are unfounded.
In February, Australian experts warned of potential challenges for Australia’s iron ore export-dependent economy in the face of trade disputes.
