Steel Tariff Lobbying Often Hides Hard Facts
Washington,
February 23, 2020
Steel Tariff Lobbying Often Hides Hard Facts
2/23/2020 Wall Street Journal Your editorial “Political Lobbying on Steel Tariffs” (Feb. 19) provides a firm illustration of the madness associated with using Section 232 of the Trade Expansion Act of 1962. This Kennedy-era law was intended to protect critical industries for specific national-security purposes. President Trump’s application is far too broad and has hurt more businesses than it has helped. Jobs in U.S. industries that use imported steel or inputs made of steel far outnumber those involved in the production of steel. In my district, the tariffs on steel and aluminum are causing businesses hardship and reduced profits. Despite over two years of effort, I’ve heard from my constituents that they aren’t able to get the high-quality steel they need from U.S. suppliers. Many of us in Congress have urged the president to abandon this across-the-board use of Section 232 tariffs and instead work with our allies to target the leading countries that are responsible for the gross overproduction and dumping on global markets. The number one target for this focus is China, which is where the administration should be directing its efforts. Rep. French Hill (R., Ark.) Little Rock, Ark. Your editorial misses the most alarming news: that Allegheny Technologies Inc. (ATI), which requested an exclusion from the Section 232 tariffs, has a joint venture with Chinese-backed Tsingshan Holdings (“I Support Trump’s Tariffs But Need an Exemption,” by Robert S. Wetherbee, op-ed, Jan. 8). Worse, as part of that deal, ATI shut down its Pennsylvania melt shop to rely exclusively on Tsingshan’s Indonesian-made, imported product. From the outside, that looks like ATI essentially sent 500 Pennsylvania steel jobs to Indonesia but now demands special treatment for their remaining 100—notwithstanding that their demand threatens roughly 1,400 other Pennsylvania stainless-steel jobs. President Trump’s tariffs are a direct response to this Chinese perfidy, designed to protect U.S. national security, American jobs and the independence of America’s stainless-steel industry. ATI’s partner, Tsingshan, built its Indonesian mill—part of China’s “Belt and Road” program—to avoid duties levied against Chinese steelmakers who dumped product at unfair prices. That mill, and Indonesia’s Chinese-backed ban on nickel exports, represents an end-around President Trump’s “America First” policies. Further, the U.S. Department of Commerce previously rejected ATI’s exclusion request on the grounds that sufficient domestic supply exists. The facts haven’t changed. While ATI’s CEO says that “buying American” isn’t an option, he forgot to mention that my plant in Kentucky is already supplying slabs to his. It’s an option he’s already using. President Trump must consider whether key national-security components should use American steel or if China should be allowed to steal American jobs by cheating in the marketplace. Say no to the exclusion. Cris Fuentes CEO, North American Stainless Ghent, Ky. |
