CPA Chairman: U.S. Must Impose Tariffs on Steel Imports

On his first day back in the White House, President Trump unveiled a sweeping plan to “put the American economy, the American worker, and our national security first.” This is critical since the nation urgently needs a trade and economic agenda to revitalize manufacturing. Trump must prioritize efforts to save America’s steel industry.

In recent years, the United States has faced a flood of low-priced steel imports from Mexico, Canada and other countries. China is also flooding the global market with surplus steel and its derivative products.

Mexico, in particular, has inflicted significant harm on America’s steel industry. In 2019, Mexico agreed to limit its steel exports to the United States to gain tariff-free access under the U.S.-Mexico-Canada Agreement. Since then, Mexico has flagrantly violated the agreement. Federal data show steel imports from Mexico have surged 472 percent above agreed-upon levels; 2024 data suggest these imports may soon reach as high as 700 percent.

This flood of steel imports comes at the expense of American producers. Mexico now accounts for 87 percent of U.S. imports of steel conduit, a vital product for the construction and manufacturing industries. Clearly, Mexico is disregarding its 2019 agreement with Washington — hardly the work of a reliable ally.

Trade measures work, however. The Section 232 steel tariffs that Trump imposed in 2018 helped revive the U.S. steel industry. Recent unchecked imports of steel and its derivatives are now reversing those gains.

An economic analysis by the Coalition for a Prosperous America found that more than 1 million U.S. jobs are at risk because of surging steel imports. That’s troubling because steel remains a key industry in Ohio, Pennsylvania, Indiana, Michigan and Illinois. America’s steel industry directly employs more than 143,000 workers while supporting more than 1 million indirect jobs nationwide.

Recently, Liberty Steel announced that it will idle its wire plant in Illinois. That follows a similar shutdown for its steel rod operations in South Carolina. Zekelman Industries has closed its Wheatland Tube plant in Chicago, resulting in nearly 250 layoffs. And Nucor Steel is halting wire rod production in Connecticut. There are also layoffs and plant closures at smaller downstream manufacturers. That includes companies that use steel to manufacture derivative products — they transform steel coil into shovels and tools or turn steel rods into screws and fasteners.

China’s steel exports hit a nine-year high in 2024, compounding the problem. China is producing far more steel than it can use — dumping this excess on global markets at artificially low prices. America’s steelmakers — who follow strict labor and environmental standards — can’t compete with these heavily subsidized imports.

This isn’t just an economic issue; it’s a national security crisis. Steel and the products made from it are foundational for military hardware. That means we can’t become dependent on foreign suppliers for critical materials. Without a thriving domestic steel industry, America’s ability to defend itself and maintain key infrastructure is at serious risk.

Trump must act decisively to protect America’s steel industry. That starts with reinstating and strengthening the Section 232 tariffs on Mexico to hold it accountable for violating the 2019 agreement. Trump should also expand tariffs to cover steel imports from Canada, Greece, Poland and Ukraine. He should also target China’s dumping of steel and downstream products through comprehensive trade measures.

Quotas must be strictly enforced to ensure these actions are effective. The administration should close all loopholes that allow low-priced imports to bypass U.S. tariffs.

America’s steel industry supports millions of American workers and is the backbone of critical industries. By imposing tariffs on steel imports and its derivatives, Trump can restore America’s industrial strength and secure a prosperous future for workers.