CPA Applauds Senators Rubio, Brown, Braun, and Casey for Urging President Biden to Increase Tariffs on Mexican Steel Imports

WASHINGTON — The Coalition for a Prosperous America (CPA) today applauded U.S. Senators Marco Rubio (R-FL), Sherrod Brown (D-OH), Mike Braun (R-IN), and Bob Casey (D-PA) for sending a bipartisan letter to President Biden urging him to increase tariffs on the surge of Mexican steel imports resulting from Mexico’s ongoing violation of the 2019 joint steel agreement. This violation has had devastating consequences for American manufacturers and workers, including the recent closure of Zekelman Industries’ Wheatland Tube plant in Chicago, which will lead to nearly 250 layoffs. CPA strongly urges the Biden administration to impose quotas and increase tariffs to address Mexico’s surge of steel imports in violation of the agreement.

The letter from the Senators highlights Mexico’s blatant disregard for the commitments it made under the 2019 joint steel agreement. Under the agreement, which was made as part of the United States–Mexico–Canada Agreement (USMCA), the U.S. agreed to lift Section 232 tariffs on Mexican steel and aluminum exports in exchange for Mexico’s promise to limit export volumes to 2015-2017 levels. However, Mexico almost immediately breached the agreement, resulting in a surge of steel imports that is directly harming U.S. manufacturers and workers.

“We commend Senators Rubio, Brown, Braun, and Casey for standing up for American steelworkers and manufacturers by calling on President Biden to take decisive action against Mexico’s violation of the 2019 steel agreement,” said Michael Stumo, CEO of CPA. “This surge in Mexican steel imports has already cost hundreds of American jobs, including the closure of Zekelman Industries’ Wheatland Tube plant in Chicago. It’s clear that Mexico’s disregard for the agreement is having real consequences and costing American jobs. It’s time for the Biden administration to restrain the Mexico steel surge by imposing quotas and increasing tariffs to enforce the commitments Mexico made.”

Earlier this month, CPA sharply criticized the Biden administration for its failure to address the surge of steel imports from Mexico, a key factor in the closure of Zekelman’s Chicago plant. The closure will result in the loss of nearly 250 well-paying jobs and is a direct consequence of the administration’s inability to protect American steel manufacturers from unfair trade practices.

“This is not just about trade policy — this is about American jobs and the livelihoods of American workers,” continued Stumo. “Mexico’s steel surge is hurting American families and communities, and it is long overdue for the Biden administration to take swift and decisive action to enforce this agreement.”

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.

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.