Biden calls for tripling of US tariffs on Chinese steel, aluminum

US President Joe Biden is calling for a tripling of the tariff rate on US imports of steel and aluminum from China, the White House said April 17.

Biden is urging the US Trade Representative to raise the existing 7.5% average tariff on steel and aluminum products under Section 301 of the Trade Act of 1974 to combat "unfair competition" from Chinese metals products, the White House said in an April 17 fact sheet.

The administration will also work with Mexico to prevent Chinese steel exports from entering the US under tariff rates set by the US-Mexico-Canada agreement on trade.

"China's policy-driven overcapacity poses a serious risk to the future of the American steel and aluminum industry," National Economic Advisor Lael Brainard said during an April 16 press call. "China's subsidies and other forms of support lead to exports flooding global markets at artificially low prices, undercutting American steel."

The new tariffs would build on previous moves. Between 2018 and 2019, the US levied Section 301 tariffs on a variety of products from China, including steel. In 2018, the US imposed a 25% tariff on steel imports and a 10% tariff on aluminum imports from multiple countries under Section 232 of the trade law, although exceptions and tariff-exempt quota agreements were later made with the EU and nations including Japan.

Biden is set to announce his support for the tariff increase as part of remarks to be delivered during an upcoming visit to the United Steelworkers of America headquarters in Pittsburgh on April 17.

In addition, the US Trade Representative is launching an investigation into "China's unfair trade practices in shipbuilding, maritime and logistics sectors" in response to a petition from five unions including United Steelworkers, the White House said.

Biden is also expected to express support for U.S. Steel Corp. to remain under domestic ownership and operation, just days after U.S. Steel shareholders approved the sale of the company to Tokyo-headquartered Nippon Steel Corp.