CPA welcomes steel union petition to open Biden Administration investigation into Chinese shipbuilding

The Coalition for a Prosperous America (CPA) welcomed a petition filed by five national labor unions with the U.S. Trade Representative (USTR) requesting an investigation into China’s predatory trade actions in the shipbuilding sector.

Ambassador Katherine Tai released a statement saying she looks “forward to reviewing this petition in detail.” Importantly, Tai highlighted that China has used predatory trade practices to “create dependencies and vulnerabilities in multiple sectors, like steel, aluminum, solar, batteries and critical minerals, harming American workers and businesses and creating real risks for our supply chains.”

“On behalf of our members that manufacture in the U.S. and the American workers they employ, CPA welcomes this petition and strongly urges the Biden administration to open an investigation,” said Michael Stumo, CEO of CPA.“Our nation used to be a global leader in the commercial shipbuilding industry, but once again China’s predatory and illegal trade practices have decimated U.S. production. While this petition is a positive development, trade investigations have become an ineffective, costly tool in protecting American manufacturers and workers. Congress should legislate tariffs and protect this critical industry permanently.”

Background

The five petitioner unions are the United Steelworkers Union (USW); the International Association of Machinists and Aerospace Workers (IAM); the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers (IBB); the International Brotherhood of Electrical Workers (IBEW); and the Maritime Trades Department, AFL-CIO (MTD).

The petition was filed pursuant to Section 302 of the Trade Act of 1974, which allows the United States to respond to unreasonable or discriminatory foreign government practices that burden or restrict U.S. commerce. The Biden administration has 45 days to decide whether to open an investigation. Currently, USTR is conducting a review of the Trump-era 301 tariffs to determine if and how they should be restructured.