State of Steel Congressional hearing warns of threats to industry

Congressmen, steel company CEOs, union leaders and others in the steel industry outlined threats they believe the steel industry continues to face at the Congressional Steel Caucus's State of the Steel Industry hearing in Washington, D.C. on Wednesday.

Industry leaders and politicians from both parties discussed the importance of maintaining tariffs and other trade protections amid a global glut of steelmaking overcapacity.

"The American steel industry faces threats on several fronts. Global steel overcapacity continues to grow as countries such as China flood domestic markets with heavily subsidized — and often, unethically produced — steel products. Over the last several years, members of this Caucus have worked hand in hand with the Administration to provide protections to American steel producers against unfair trade practices," Mrvan said.

Section 232 steel tariffs of 50% have helped prevent steel dumping and lifted up domestic steel production, Mrvan said.

"In part because of the persistence of this bipartisan Caucus, there has been significant progress over the last couple years to strengthen these measures," Mrvan said. "This Caucus will continue to work closely with the Trump Administration to hone its strategy on 232 tariffs to ensure that the policies enacted serve to benefit American steelmakers, workers and manufacturers."

The Congressional Steel Caucus has been working to ensure the administration has the resources to enforce trade protections, Mrvan said. Last week, the House approved funding for the International Trade Commission and International Trade Administration to investigate violations of trade policy, such as the dumping of subsidized steel below market value.

"This funding is expected to be signed into law next week and will help ensure that American industry and workers can compete on a level playing field. Many of my colleagues present today are also championing legislation that strengthens the domestic steel industry through enhancing trade enforcement, rebuilding our domestic shipbuilding capacity, and improving Buy America requirements," Mrvan said. "As the USMCA is renegotiated this year, the Steel Caucus will also be engaged in closing the loopholes that exist in the current agreement that allow for transshipment of Chinese steel products that directly harm American businesses."

The steel industry is vital economically and a major contributor to national security, as well as the automotive, manufacturing, construction, energy and transportation sectors, Mrvan said.

"This industry is also the lifeblood of communities across the country, including in Indiana where the steel industry directly employs about 28,000 workers and is responsible for more than a quarter of the nation’s total steel production," Mrvan said. "All of the industry stakeholders testifying today maintain a large presence in my state, with facilities in East Chicago, Gary, Hobart, Burns Harbor, Crawfordsville, Fort Wayne and beyond. I thank you all for helping to create work and wealth for families in the state of Indiana and across our nation."

Communities like Northwest Indiana depend heavily on steelworker jobs, Mrvan said.

"As the grandson of a steelworker who spent 53 years in the steel mills in East Chicago, I know the importance of advocating for good-paying jobs for working families," he said. "I will continue to be a strong advocate for these workers and will do everything in my power to secure the continued health and strength of the domestic steel industry."

The steel industry has invested $25 billion in the United States since the Section 232 tariffs were first announced in 2018, Steel Dynamics President and Chief Operating Officer Barry Schneider said. The Fort Wayne-based steelmaker has invested $6 billion during that period to build more steelmaking capacity as it eyes greater market share in the automotive and other industries.

"Due to strong government actions, such as strengthening the section 232 tariffs and developing a derivative product inclusions process, rightsizing regulations and passing significant tax reforms, the American steel industry is well positioned. However, many of the issues that have caused job losses and economic harm in the past are still lingering," he said. "China continues to dump their massive steel overcapacity globally, distorting steel markets; interest rates remain too high; permitting inefficiencies persist and workforce shortages continue to impact manufacturing."

Congress can do more this year to shore up the steel industry, including by investing in infrastructure and strengthening trade investigations, Schneider said.

"While the 232 steel tariffs protect against dumping of unfairly made imports onto our shores, China-led global overcapacity is not slowing down. China produces far more steel than it can ever use, dumping 118 million tons on the global market last year alone," he said. "That record is predicted to climb even higher this year, putting steelworkers everywhere at risk."