WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) today released a statement highlighting the harm caused by Mexico’s ongoing, blatant violation of the 2019 joint steel agreement. Earlier this month, Liberty Steel announced its decision to idle its wire plant in Peoria, Illinois after idling the steel mill rod mill operations there in October. Liberty Steel also suspended rod mill operations at its Georgetown, South Carolina facility earlier this year. These closures reflect a broader crisis in the U.S. steel industry driven by unchecked, surging imports from Mexico, Canada, and other countries, including Malaysia, Algeria, Vietnam, and Egypt, and highlight the urgent need for the incoming Trump administration to take decisive action.
Liberty Steel’s operations in Peoria, which include a melt shop, rod mill, wire mills, and agricultural fence product manufacturing, as well as its wire rod mill in Georgetown, have been directly impacted by a flood of cheap steel imports. Wire rod imports surged by over 200,000 tons this year with shipments entering the U.S. market at prices below domestic production costs, even with the existing 25% tariffs.
“This is a stark example of how low-priced imports, enabled by weak enforcement of trade agreements, are driving American manufacturers out of business and harming U.S. workers,” said Zach Mottl, Chairman of CPA. “The Biden administration has failed to confront Mexico’s blatant violations of the 2019 joint steel agreement, which has allowed the surge of steel imports that are devastating American steelmakers and their employees.”
The 2019 joint steel agreement, tied to the United States–Mexico–Canada Agreement (USMCA), required Mexico to limit its steel export volumes to 2015-2017 levels in exchange for the removal of Section 232 tariffs. Mexico’s breach of the agreement has exacerbated the flood of imports with devastating consequences for U.S. manufacturers and workers:
- Imports from Mexico surged to 472% above the baseline in 2023, with initial 2024 data suggesting levels could rise to 700%.
- Mexico now accounts for over 87% of U.S. imports of steel conduit, a critical product for American construction and manufacturing industries.
- The unchecked surge has already led to major closures, including Zekelman Industries’ Wheatland Tube plant in Chicago, resulting in nearly 250 layoffs.
CPA’s economic analysis indicates that over one million American jobs are at risk due to the Mexican steel surge and the broader import crisis. Mexico’s actions are not those of a reliable ally and are directly harming America’s industrial base.
“Mexico is no different than China when it comes to exploiting trade agreements and undercutting American industry,” Mottl continued. “The surge in steel imports from Mexico is proving to be just as harmful as the China Shock that decimated American manufacturing a decade ago. It’s time to stop pretending that Mexico is a trustworthy ally and take strong action to protect American workers and businesses.”
CPA is calling for the incoming Trump administration to take immediate action to reimpose Section 232 tariffs on Mexico and other bad actors, enforce stricter trade rules under USMCA, and hold Mexico accountable for its violations. If Mexico continues to breach its commitments, CPA urges the U.S. to reconsider Mexico’s participation in USMCA altogether.
“The Biden administration’s failure to enforce trade agreements has left American steelworkers and manufacturers to bear the brunt of this crisis,” Mottl concluded. “The Trump administration must act decisively to protect American jobs and ensure our trade policies prioritize the interests of U.S. producers over foreign profiteers.”
Liberty Steel has announced plans to restart operations at its Peoria plant in February and March 2024, but the Georgetown facility will remain idle until market conditions improve. Without decisive action to stem the tide of cheap imports, CPA warns that more closures, layoffs, and economic harm will follow.
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