Cleveland-Cliffs, USW blame U.S. Steel for lack of tariffs despite tin mill idlings
After years of successful trade cases, the domestic steel industry was shocked when the U.S. International Trade Commission voted against imposing protective tariffs on tin imports despite the idling of tin mills, including East Chicago Tin and at Gary Works.
Cleveland-Cliffs and the United Steelworkers union are blaming U.S. Steel for not taking part in the case after the ITC released a report with its rationale. The quasi-judicial agency that adjudicates international trade law found tin mill imports from Canada, China and Germany did not cause economic injury in the United States.
"It is now clear that the decision by United States Steel Corporation not to participate as a petitioner in this trade case — or provide a substantive response to the ITC’s request for further information on the idling of tin lines in Gary and East Chicago, Indiana and the closure of UPI in California — directly led to the ITC’s negative determination," Cleveland-Cliffs' Chairman, President and CEO Lourenco Goncalves said. "Had U.S. Steel cooperated with the ITC, the Commission would not have been left without the information needed to discern the market forces behind U.S. Steel’s withdrawal from the tin mill products market in the United States.”
U.S. Steel spokeswoman Amanda Malkowski said the Pittsburgh-based steelmaker did comply with the the ITC's probe.
"Although U. S. Steel was not a petitioner in the tin mill case, it fully cooperated with the U.S. International Trade Commission, replying to its questionnaires," she said. "U. S. Steel has been a leading petitioner for decades in successfully using the U.S. trade laws to address unfair trade across a broad range of steel products from dozens of countries, ensuring a stronger future for steel workers and steel manufacturing in this country. U.S. Steel remains in the tinplate business and continues to process orders from existing customers and accept orders from new customers."
Cleveland-Cliffs is idling its Weirton Tin Plant in West Virginia and laying off 900 workers as a result of the decision, which it says will flood the market with cheap, unfairly traded steel.
Goncalves said tariffs were warranted given all the tin mills U.S. Steel has idled in recently years, such as its tin mill operations at Gary Works.
“U.S. Steel’s January 2022 announcement that it would shut down its UPI tin mill in Pittsburg, California left the West Coast completely exposed to imports, particularly from Asian countries like Japan and China. This decision played a major role in the surge of imported tin mill product that hit the U.S. in mid-2022 and decimated the domestic industry, harming workers and communities," he said. "In spite of U.S. Steel’s intransigence, I am grateful for the partnership of the USW that allowed this case to go forward. The report issued this week made clear that, unfortunately, the ITC discounted the filings and testimony of the USW that clearly articulated how its members at Cleveland-Cliffs and U.S. Steel had been materially injured by unfair trade.”
United Steelworkers Union International President David McCall said the International Trade Commission's decision not to act is going to hurt the American steel industry.
“USW members across the tin mill industry can compete with anyone on a level playing field,” said USW International President David McCall. “Unfortunately, the ITC’s decision continues to leave them and their families vulnerable to unfair trade, threatening their livelihoods and imperiling the communities in which they live and work."
He called for tougher trade laws to protect good-paying union steelworker jobs in America.
“Dumped and illegally subsidized tin mill products have already cost far too many good, American jobs, and USW members understand as well as anyone that without relief, foreign producers will continue to undercut our market until we are wholly dependent on them," McCall said. “It’s clear that our nation urgently needs strategic reform of our broken trade system so that domestic workers and industries aren’t forced to fight on a case-by-case basis to ensure they have a future.”
The United Steelworkers union is arguing U.S. Steel's proposed sale to Nippon Steel would jeopardize more trade cases and what's left of the American steel industry.
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