President Joe Biden is set to announce a significant increase in tariffs on steel and aluminum from China in an effort to protect American producers from an influx of cheap imports. The announcement, which will take place during a visit to steelworkers in Pennsylvania, is part of Biden's strategy to address unfair trade practices while also appealing to voters in a key battleground state. The White House has emphasized that the move is aimed at safeguarding American manufacturing rather than just pandering to a union audience.

In addition to tripling tariffs on Chinese steel and aluminum, the administration plans to pursue anti-dumping investigations against countries and importers attempting to flood existing markets with Chinese steel. The goal is to prevent Chinese companies from circumventing the tariffs by shipping steel through Mexico for subsequent export to the U.S. White House National Economic Adviser Lael Brainard stressed the importance of protecting American workers and investments from China's industrial overcapacity.

The administration argues that China's policy-driven overcapacity poses a serious threat to the American steel and aluminum industry by distorting markets and eroding competition. The move to increase tariffs reflects Biden's commitment to investing in American manufacturing while also addressing concerns about China's unfair trade practices. However, higher tariffs could potentially lead to increased costs for consumers, affecting industries like automotive and construction.

The announcement comes amid broader efforts by the Biden administration to bolster American manufacturing, including providing funding for a Taiwanese semiconductor company to expand facilities in Arizona. Treasury Secretary Janet Yellen has warned against oversaturating the market with cheap goods, highlighting the challenges posed by low-cost steel imports. The move to increase tariffs on Chinese steel and aluminum is part of a broader strategy to protect American industries from unfair competition and ensure a level playing field in international trade.