WASHINGTON — The Coalition for a Prosperous America (CPA) today sharply criticized the Biden administration for failing to address the surge of steel imports from Mexico, a key factor in the announced closure of Zekelman Industries’ Wheatland Tube plant on Chicago’s Southwest Side. The closure will result in nearly 250 layoffs — a loss of good-paying jobs that fall squarely on the Biden administration’s inability to protect American steel manufacturers from Mexico blatant violation of the 2019 joint steel agreement.
The joint steel agreement was made when the United States–Mexico–Canada Agreement was signed. In that agreement, the U.S. agreed to drop Section 232 tariffs if Mexico agreed to restrain steel and aluminum export volume to 2015-17 levels. The U.S. complied with the agreement. Mexico almost immediately breached it and continues the breach today, directly harming many U.S. companies and American workers.
A recent economic analysis from CPA found that more than one million American jobs are at risk as a result of the Mexican steel surge. Mexico’s increased shipments now account for over 87% of U.S. imports of steel conduit and import levels are nearly 500% over the historic baseline. For steel conduits specifically, imports from Mexico reached 472% above the 2015-2017 baseline period, based on Panjiva data. Initial 2024 trade data suggested the surge will rise to nearly 700% over the baseline in 2024.
“The Biden administration’s refusal to enforce the 2019 agreement agreed to, and then breached by, Mexico has led directly to this devastating plant closure,” said Michael Stumo, CEO of CPA. “Zekelman Industries has been a pillar of the Chicago community, providing good-paying jobs to nearly 250 hardworking Americans. But due to the White House’s failure to act, these jobs are being destroyed from unfair competition from Mexico, which continues to flood our market with cheap steel products.”
In June, American domestic steel producers and organizations representing the industry and its workers sent a letter to President Biden urging the administration to take immediate action to address Mexico’s ongoing and blatant violation of the 2019 joint steel agreement. In March, CPA applauded U.S. Senators Tom Cotton (R-AR) and Sherrod Brown (D-OH) for introducing the Stop Mexico’s Steel Surge Act, bipartisan, bicameral legislation to reinstate a 25% Section 232 steel tariff on Mexico to address surging imports.
The Mexican Steel Surge is Harming CPA Member Companies
CPA member companies producing steel products have facilities at risk across 34 states, including Ohio, Pennsylvania, Kentucky, Georgia, Florida, Texas, Arizona, Illinois, Washington, Idaho, Oregon, Utah, Nevada, California, New Mexico, Kansas, Arkansas, Mississippi, Louisiana, South Carolina, North Carolina, West Virginia, Indiana, Iowa, Michigan, Virginia, Alabama, New Hampshire, Maryland, Massachusetts, Connecticut, Rhode Island, and New York. These plants are often located in underserved communities, providing jobs that pay more than double the regional average.
The continued surge of Mexican steel imports has already had a devastating impact on U.S. manufacturers and workers. The surge in imported Mexican steel conduit led directly to the closure of Zekelman Industries’ Long Beach mill, resulting in the loss of 150 jobs. Wheatland Tube, a steel conduit manufacturer, also announced the closure of its Long Beach, California factory and the layoffs of 145 workers, citing surging Mexican steel conduit imports as the reason.
Biden Administration’s Failure to Act
Despite repeated warnings from CPA and the broader U.S. steel industry, the Biden administration has failed to implement adequate measures to stem the flow of Mexican steel imports. Earlier this year, CPA called on the administration to apply stronger tariffs and quotas on Mexican steel to protect American manufacturers, but the steps taken have fallen woefully short.
“President Biden has talked about supporting American workers, but his administration’s failure to protect U.S. steel market share in the home market tells a different story,” continued Stumo. “This plant closure is just the latest casualty in a trend of job and investment losses and plant closures across the U.S. because of unchecked Mexican steel imports. We need strong and immediate action to safeguard the future of American manufacturing.”
CPA continues to call on the Biden administration to immediately impose quotas on Mexican steel imports to ensure that import volumes comply with the 2019 agreement. Without swift action, more plants will close and more Americans will lose their jobs.
RELATED:
- July 2024: Biden Administration’s Actions To Address Mexico Steel Surge Fall Woefully Short
- June 2024: U.S. Steel Companies, Industry Groups Urge Biden To Act On Mexico Steel Surge
- August 2023: CPA Urges Biden Administration to Address Mexico’s Blatant Violation of Joint Steel Agreement
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