United Steelworkers Union Criticized Biden Administration: Tax Incentives Help Chinese Manufacturers!

A joint letter was sent by a group of major U.S. steelmakers and the United Steelworkers union to the Treasury Department, expressing criticism of a Biden administration policy that could potentially allow tax incentives to aid Chinese steel manufacturers, as reported by The Daily Caller.

United Steelworkers Union Criticized Biden Administration: Tax Incentives Help Chinese Manufacturers! (PHOTO: Wall Street Journal)

United Steelworkers Union’s Concerns

The letter expressed the concerns of both the United Steelworkers union and major steel companies regarding the Treasury Department’s plan to offer an additional tax credit for green energy projects using metal and components made in the U.S. The policy has come under scrutiny as it leaves room for solar panel firms to use foreign steel for certain critical components while still qualifying for the 10% tax credit. China, being the largest steel producer globally, is a major supplier of green energy-related products, including solar panels.

The letter emphasizes the potential damage to U.S. domestic steel producers if the current guidance is finalized, putting at risk 1.5 million tons of steel production and endangering the livelihoods of millions of Americans dependent on the industry. The primary concern raised by United Steelworkers Union in the letter pertains to the classification of the photovoltaic tracker, the mechanism responsible for orienting solar panels towards the sun’s movement. By categorizing the photovoltaic tracker as a “manufactured product,” the Treasury effectively exempts it from the regulations that necessitate the use of domestic steel.

The Treasury Department’s proposal aligns with the Biden administration’s focus on green energy subsidies through the Inflation Reduction Act, which Goldman Sachs analysts estimate will result in $1.2 trillion in tax breaks for green energy.

President Biden has aimed to garner support from major unions, proclaiming to be “the most pro-union president you’ve ever seen” before the 2020 election. His pro-union efforts include advocating for the Protecting the Right to Organize Act, which some Republicans criticize as forcing unionization on workers, and signing an executive order in April 2021 to investigate methods of increasing union membership.

READ ALSO: $130 Million Student Loan Cancellation At Colorado College: Biden Administration Announced!

United Steelworkers Union

As of now, neither the United Steelworkers Union nor the Treasury Department has responded to the request for comments on the matter. The ongoing discussions between the concerned parties will play a significant role in shaping the future of tax incentives for green energy projects and their potential impact on domestic steel producers and manufacturers.

READ ALSO: $6.88 Billion New York Tunnel Project: Biden Administration Advances Grant!