Brown, Cleveland-Cliffs, USW Call for Action to Stop Mexican Steel Surge

CLEVELAND, OH - Today, U.S. Senator Sherrod Brown (D-OH), United Steelworkers leadership and Cleveland Cliffs leadership called on the administration to act to stop the dramatic surge in Mexican steel imports, which has been attributed to the Chinese government routing steel through Mexico to avoid U.S. tariffs. The Mexican government is currently violating a 2019 agreement with the U.S. and threatening steelworkers in Ohio and around the country. Brown has led efforts pushing the Administration to take aggressive action to enforce the agreement to level the playing field for American manufacturers and workers in the steel industry. The delay in action by the Biden Administration is costing American steel jobs, and Brown's legislation would compel the Administration to act.

Brown renewed his calls on the Administration in a letter he sent today urging the Administration to address the surge with Mexican President elect Sheinbaum's cabinet. Brown highlighted that Mexican imports of Chinese steel and iron products doubled between 2015 and 2023. This surge of steel - including Chinese steel - entering the U.S. is unsustainable and a threat to American jobs, as well as our economy and national security.

"We all know how important trade enforcement is to this industry, and to Ohio workers - we're seeing how this surge is hurting Ohio workers and American workers," said Brown. "We must pass our bipartisan legislation to reinstate tariffs on Mexican steel. I will keep pushing the President to take action to force Mexico to stem its steel surge now, and raising the alarm about the alarming rise in Chinese still coming into the country through Mexico."

"Mexico's trade practices are a direct threat to the manufacturing resurgence currently underway in the United States. When the U.S. exempted Mexico from the Section 232 steel tariffs, Mexico agreed not to exceed historic volumes of steel exports into the U.S. In blatant disregard for this commitment, Mexico continues to surge massive volumes of steel into the U.S. market. For example, Mexico is on pace to ship more than three times its historic volume of corrosion-resistant steel to the United States in 2024. To make matters worse, Mexico has become a global hub for trade circumvention and is abusing its favored trade status with the United States to facilitate tariff evasion by China and other nations. This must stop. I commend Senator Brown and co-sponsors of the Stop Mexico's Steel Surge Act for working to reimpose Section 232 tariffs on Mexico," said Lourenco Goncalves, Chairman, President & Chief Executive Officer, Cleveland Cliffs Inc.

"Across the country we're seeing how this steel surge is hurting USW workers, USW organized steel plants, and our country's manufacturing future. We'll keep working with Senator Brown to stem this steel surge. Whether it's on trade or U.S. steel production or protecting USW jobs, Senator Brown has always stood with USW, and fought for our jobs and our people. This time is no different. Senator Brown's dedicated efforts to stop unfair Trade coupled with his support for an Industrial policy for America not only benefits USW members and their families, it also drives the economic engine for Ohio and beyond," said Dave McCall, USW International President.

Last August, Mexico's Grupo Simek announced plans to close Republic Steel plants in Canton, Ohio, and Lackawanna, New York, while moving significant quantities of that production to Mexico. These closures mean the loss of over 500 good-paying, union jobs. Grupo Simek's decision not to invest in their U.S.-based assets and to shift production to Mexico further highlights the lack of seriousness by the Mexican government in adhering to the 2019 agreement.

In December, Brown and a bipartisan group of senators demanded the Biden Administration take immediate action and set a clear deadline for Mexico to enforce its 2019 agreement with the U.S.. That escalation in pressure followed Brown's bipartisan push earlier in the year urging the Administration to take action against the unsustainable surge in Mexican steel imports.

Brown has long fought to counter China's trade cheating and has long championed the Ohio steel industry, advocating to the Commerce Department and the ITC on behalf of Ohio steel companies and their workers and advancing legislation to strengthen American trade enforcement. Brown has introduced numerous bipartisan bills to strengthen U.S. trade enforcement, including the Leveling the Playing Field 2.0 Act to strengthen U.S. trade remedy laws and ensure they remain effective tools to fight back against unfair trade practices and protect American workers.

Brown's letter is available here or below.

Dear Ambassador Tai and Mr. Sullivan:

I write to you to reiterate the necessity for the Administration to take action to mitigate the unsustainable surge of Mexican steel imports into the U.S. market, in violation of the 2019 Joint Agreement on Steel and Aluminum. This matter continues to be a prevalent issue harming the American steel industry and American steelworkers nationwide. In light of the recent presidential election in Mexico, I bring this ongoing matter to your attention again and urge you to address this with your counterparts in President elect Sheinbaum's cabinet.

As you know, the U.S. lifted its 25 percent tariffs on Mexican steel imports in May 2019 as part of an agreement that prohibited steel import surges "meaningfully beyond historic volumes of trade." It is abundantly clear that such surges into the U.S. market continue, and it is now necessary for the Administration to take measures to enforce the joint agreement. Aggressive action is imperative to enforce the 2019 agreement and protect American steel jobs.

According to a recent economic analysis published by the Coalition for a Prosperous America (CPA), increased Mexican shipments now account for over 87 percent of total U.S. steel conduit imports, and imports are 472 percent over the historic baseline. Trade data also shows that Mexico is on pace to ship more than three times its historic volumes of corrosion-resistant steel to the United States in 2024. Simultaneously, Mexico has increased steel imports from China and India, with Mexican imports of Chinese steel and iron products having doubled between 2015 and 2023.1 This surge of steel - including Chinese steel - entering the U.S. is unsustainable and a threat to American jobs, as well as our economy and national security. The time is now to take remedial action to stop China and other countries from routing steel imports through Mexico to evade tariffs and it is essential that Mexico comply with the 2019 Joint Agreement.

I urge the Biden Administration to take immediate action to work with the incoming Mexican government and remediate this critical ongoing issue. Thank you for your attention to this matter. I look forward to your response.

Sincerely,

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