Biden Seeks Steep Tariffs Hike on Some Chinese Steel, Aluminum Imports

President Biden is reportedly seeking a more than tripling of certain tariffs on imports of steel and aluminum from China, to 25% from 7.5%, as he aims to attract workers ahead of the presidential election later this year.

The new levies would be in addition to a separate 25% tariff on steel and a 10% duty on aluminum imposed by the Trump administration.

Shares of Alcoa (AA), one of the world’s largest aluminum producers, surged almost 3% soon after the opening bell Wednesday.

Chinese exports have surged recently while U.S. Treasury Secretary Janet Yellen has accused Beijing of creating excess capacity and cut-price goods on the back of the country’s strategy of turbocharging manufacturing.

The Commerce Department has imposed more than 30 anti-dumping and countervailing duties on steel-related products under the Biden administration, a White House statement said.

“American-made steel remains critical for our economic and national security,” the statement said.

Last month, President Biden voiced concerns about Nippon Steel’s proposed $14 billion all-cash acquisition of U.S. Steel announced in December. U.S. Steel shareholders approved the sale of the storied company to the Japanese firm but union opposition and ongoing regulatory reviews are raising doubts about the deal. The White House said Wednesday that “U.S. Steel has been an iconic American steel company for more than a century, and that it is vital for it to remain an American steel company that is domestically owned and operated.”