U.S. President Joe Biden is set to announce a proposal for significantly increased tariffs on Chinese metal products, as part of a series of policy measures designed to resonate with steelworkers in Pennsylvania, a crucial swing state. During campaign stops in Pittsburgh, also known as the “Steel City,” Biden is expected to advocate for raising the tariffs on Chinese steel and aluminum products to 25%, a substantial increase from the current maximum of 7.5% imposed under the previous administration’s policy pursuant to Section 301 of the U.S. trade law. This move follows a review initiated by Biden in 2022.
In addition to the tariff adjustments, the Biden administration is exerting pressure on Mexico to prevent China from indirectly selling its metal products through the U.S. border country. Simultaneously, an investigation into Chinese trade practices within the shipbuilding, maritime, and logistics sectors is being launched, potentially leading to the imposition of further tariffs.
The unveiling of these measures, coinciding with Biden’s visit to the headquarters of the United Steelworkers union, is anticipated to provoke a response from China, exacerbating the already heightened tensions between the world’s two largest economies. Notably, the imposition of tariffs by former President Donald Trump during his tenure was met with retaliatory levies from China.
Given Pennsylvania’s status as a pivotal battleground state, and with the economy ranking as a top concern among voters, the proposed policies and their potential impact on the steel industry are likely to factor prominently in the November election rematch between Biden and Trump.