Steel groups back tariffs; Aluminum Association urges exemptions

Trade groups representing United States-based steelmakers have spoken positively about the 25 percent tariff on all inbound steel and aluminum levied by President Donald Trump's administration.

The CEO of the Aluminum Association, while saying he appreciates the White House’s “continued focus on strong trade actions,” also says, “Today, there is not enough smelting capacity in the United States to supply the growing aluminum industry with the input materials it needs.”

In a statement posted Feb. 11 to the website of the Virginia-based Aluminum Association, its President and CEO Charles Johnson also says Trump should secure access to the aluminum metal supply needed for U.S. manufacturers "while continuing to take every possible action at the U.S. border against unfairly traded aluminum from China and elsewhere."

"This is consistent with action his administration wisely took during his first term, and we are confident he will take again," Johnson says.

Ten days earlier in a previous statement, Johnson specifically mentioned Canada as a vital trading partner for the U.S. aluminum sector.

“The United States is a powerhouse in aluminum production and fabrication against global competitors; that strength relies on imports of upstream aluminum, both smelted and scrap, from Canada,” he says.

Philip K. Bell, president of the Washington-based Steel Manufacturers Association (SMA), has issued a more broadly welcoming statement toward the new tariff policy. The organization represents electric arc furnace (EAF) steelmakers that consume considerable volumes of recycled steel annually.

“The SMA applauds President Trump for putting the American steel industry and its workers first by imposing a 25 percent tariff on all steel imports," Bell says in a Feb. 10 statement. "President Trump understands that America’s steel industry is the backbone of our economy. A thriving domestic steel industry is critical to U.S. national, energy and economic security.

“Tariffs are a powerful tool to fight against unfair trade and state-sponsored overcapacity around the world and compel other nations to take a serious approach to fair trade. This decisive action sends a clear message to the world: the United States will not tolerate unfair trade practices that harm American workers and industries.”

The Washington-based American Iron and Steel Institute (AISI) had not posted a statemen regarding the tariffs as of the evening of Feb. 11. That group represents some EAF steelmakers, blast furnace/basic oxygen furnace mill operator Cleveland-Cliffs and some stainless steel producers.

However, the group’s President and CEO Kevin Dempsey was quoted in a Feb. 10 Reuters report as saying, “We look forward to working closely with the president and his administration to implement a robust and reinvigorated trade agenda to address the many foreign market-distorting policies and practices that create an unlevel playing field for American steelmakers.”

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On Jan. 21, Dempsey wrote, “We also appreciate the president’s instructions to his advisors to review and assess the effectiveness of the Section 232 steel tariff program that he established in 2018. We urge the new administration to take active steps to reinvigorate that program to ensure it is meeting the objectives originally established by President Trump during his first term.”

Among AISI’s nine carbon or stainless steel member companies are ArcelorMittal, which operates mills in Canada, and Tenaris, which has operations in Mexico.