Congressional Steel Caucus asks that Section 232 tariffs don't become a bargaining chip

First District U.S. Rep. Frank Mrvan, D-Highland, and other members of the Congressional Steel Caucus are urging the Trump administration not to use tariffs on steel as a bargaining chip in upcoming trade negotiations.

The caucus, which consists of more than 100 members of Congress from parts of the country that make steel or supply the steel industry, sent a letter asking the administration to maintain the 50% tariffs on most foreign-made steel during trade talks.

“The Section 232 steel tariffs are critical for our national security and the economic strength of the American steel industry, including the members of the United Steelworkers and all members of organized labor and our workforce," Mrvan said. "I look forward to continuing to work with the members of the Congressional Steel Caucus to uphold the Section 232 program and ensure that the American steel industry can compete on a level playing field."

The letter to the Secretary of the Department of Commerce and the United States Trade Representative voiced concerns about past trade agreements that fueled global steelmaking overcapacity, and how the United States has not yet reached a multi-lateral agreement to rein in capacity that often leads to steel dumping below fair market value.

The Organization for Economic Co-operation and Development forecasts overcapacity will grow by 120 million metric tons to 721 million metric tons — roughly nine times the annual U.S. production — by 2027.

Congressional Steel Caucus members said adequate protections were needed to protect the domestic steel industry, including steelmakers and fabricators.

“The Congressional Steel Caucus continues to support Section 232 steel tariffs to put the American steel industry first for our economic and national security," Chairman Rick Crawford said. "It is vital that the administration’s trade negotiations safeguard Section 232 to ensure our steel industry is on a level playing field internationally and prevent unfair trade practices by bad actors.”