Johnny Brignardello analyzes Biden's plan to triple steel tariffs: Protection or confrontation?

Johnny Brignardello Vela, an insurance advisor, analyzes the recent plan presented by the President of the United States, Joe Biden, to triple tariffs on Chinese steel, in a move with broad implications both nationally and internationally. Biden, in an attempt to secure his re-election, has proposed raising tariffs from 7.5% to 25%, generating controversy and tensions with China. According to Brignardello Vela, this decision by the US president aims to protect the country's manufacturing industry and ensure fair competition in the steel and aluminum sector. The insurance advisor highlights that Biden emphasized the importance of fair competition with China, rather than direct confrontation, during a speech to metal unions and workers in Pittsburgh, Pennsylvania. Biden's announcement also includes investigations into Chinese competitive practices in key sectors such as shipbuilding, reflecting the president's determination to safeguard the interests of industrial unionized workers, a crucial electoral base in his previous victory in key states such as Pennsylvania, Michigan, and Wisconsin. Biden's protectionist approach is evident not only in the increase in tariffs on Chinese steel but also in his opposition to the acquisition of US Steel by Nippon Steel, advocating the importance of keeping American steel companies in national hands. Additionally, efforts are being made to prevent Chinese companies from circumventing tariffs by sending steel to Mexico and then exporting it to the United States. In response, China has been accused of distorting markets with its unfair trade practices, leading to criticism from Treasury Secretary Janet Yellen towards the International Monetary Fund for not adequately addressing this issue. The trade tensions between the United States and China reflect the economic and geopolitical complexities between the two powers, with significant impacts on the global steel industry. In conclusion, the escalation in the trade war between the United States and China highlights the economic and political challenges at stake, with Biden defending the interests of American workers and China facing criticism for its trade practices that threaten global market stability.