USW Reacts to U.S. Trade Commission Vote on Hot-rolled Steel; Tariffs Retained on China, India, Indonesia, Others

Future of American steel industry more secure with affirmative ruling

The United Steelworkers (USW) said yesterday’s affirmative ruling by the U.S. Trade Commission (ITC) on retention of tariffs of hot-rolled steel imports from China, India, Indonesia and three other countries is the correct outcome, based on the facts presented by the union and the domestic steel companies at a public hearing held in July.

“We’re damn pleased,” declared Leo W. Gerard, USW president. “American steelworkers and the companies employing them produce world class steel, but the predatory practices and government subsidization policies by some of the largest foreign steel producers are illegally dumped.”

According to the ITC rulings, the six commissioners made affirmative determinations to retain tariffs on imports from China, India, Indonesia, Taiwan, Thailand and Ukraine. Negative determinations to remove import tariffs were made for Argentina, Kazakhstan, Romania and South Africa.

“All in all, this is a very good outcome for the industry and our steelworkers,” Gerard said.

More than 60 active and retired steelworkers packed into the ITC hearing room this past July 31, coming from domestic steel mills that produce hot-rolled bands from Indiana, Illinois, Ohio, Michigan and Maryland.

The USW president said domestic producers sell more hot-rolled steel than any other flat-rolled product. “Hot-rolled steel is without question one of the most vital steel products made in the U.S. Not only is hot-rolled steel used in automotive and construction applications, among others, but it is processed internally to make corrosion resistant steel, cold-rolled steel, tin mill, steel pipe and tube.

“The USW and its members thank the members of Congress who testified before the ITC hearing this summer in support of keeping the tariffs on the foreign steel producers,”   Gerard said. Trade law requires a Sunset Review after tariffs have been in place for five years.

Tom Conway, USW vice president, also appeared before the ITC, saying the threat to domestic steel producers is greater now than it was during 2000 – the last full year before the orders at issue were imposed. He cited China's production was only 72 percent of U.S. production, but this year, China's production will equal 374 percent of U.S. production.  “China's record leaves absolutely no doubt that it will flood this market if it gets the chance.”

Additional information is available at:  www.standupforsteel.com.