Surging Imports and Policy Failures Force U.S. Steel Plant to Halt Production of Key Product

WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) today highlighted the halting of production at another critical U.S. steel facility due to surging steel imports and failed trade policies. Nucor Corporation has announced it will halt production at its wire rod rolling mill in Connecticut, citing challenging market conditions created by a flood of low-priced imports from Canada, Greece, Mexico, Poland, and Ukraine. This shutdown of production follows similar shutdowns by Liberty Steel last year in Peoria, Illinois, and Georgetown, South Carolina, underscoring a growing crisis in the U.S. steel industry.

The incoming Trump administration should take immediate steps to protect U.S. steelmakers by enforcing the 2019 joint steel agreement, reinstating the Section 232 tariffs, enforcing stricter trade rules under USMCA, and holding Mexico accountable for its violations. If Mexico continues to breach its commitments, CPA urges the Trump administration to reconsider Mexico’s participation in USMCA altogether.

“Unchecked, duty-free imports from countries like Canada, Mexico, and Ukraine are gutting America’s steel sector and devastating good-paying American jobs,” said Zach Mottl, Chairman of CPA. “This halting of production and other recent plant closures are a direct result of unconscionable failures to enforce existing trade agreements—a failure that has allowed foreign nations to flood the U.S. market with cheap steel imports, while American manufacturers are left to compete at a disadvantage. It is critical for the incoming Trump administration to act swiftly to address this crisis and implement a trade agenda that puts U.S. producers and workers first.”

Mexico’s actions have been particularly devastating for U.S. producers, including Mexico’s blatant violations of the 2019 joint steel agreement—made alongside the United States-Mexico-Canada Agreement (USMCA). This agreement required Mexico to limit its steel export volumes to 2015-2017 levels in exchange for the removal of Section 232 tariffs.

The Biden administration has failed to take meaningful action to address this violation. Instead, imports from Mexico have surged to unprecedented levels, further undermining U.S. producers. Mexico’s actions are not those of a reliable ally and are directly harming America’s industrial base, exacerbating 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.
• 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.

CPA recently highlighted Liberty Steel’s closures as a warning sign of the dire state of the U.S. steel industry. The unchecked surge has led to additional major closures, such as the Zekelman Industries’ Wheatland Tube plant in Chicago which resulted in nearly 250 layoffs. The closure of Nucor’s Connecticut facility is yet another alarming development in this ongoing crisis, which is fueled by low-priced imports, including from Mexico and Canada. This import surge is a direct threat to U.S. steel mills and the loss of thousands of American jobs.

“This isn’t just an economic challenge—it’s a national security crisis,” Mottl continued. “Steel is the backbone of our defense and infrastructure, and its decline leaves the United States dangerously dependent on foreign suppliers. The incoming Trump administration has a mandate to take bold action: reinstate tariffs, enforce trade agreements, and stop the predatory practices of foreign steel producers.”