By Jay Heflin - 08/30/10 04:35 PM EDT
The group states China's practices amount to as much as a 40 percent subsidy, which makes it difficult for U.S. producers to offer competitive prices against Chinese companies in the world market.
Fixing the currency issue would help to shrink the country's trade deficit as more U.S. goods would be sold. It would also help reduce the government's deficit.
"Preliminary estimates point to as much as a $500 billion reduction in our nation's federal budget deficit over the next six years from ending China's currency manipulation," said USW president Leo Gerard in prepared remarks on Friday.
His group also sent a letter to Congress calling for action on the currency issue.
"Next month, when Congress returns, you will have the opportunity to cut our trade deficit in order to address lagging growth, and, at the same time, make a substantial down payment on the federal deficit while spurring job growth," the letter states.
The group specifically urges action on the Currency Reform for Fair Trade Act. The bill, in part, enables the U.S. to take action against country's that manipulate their currency.
The House Ways and Means Committee will host a hearing on currency manipulation when lawmakers return in September.