US politicians, Canadian producers seek steel policy changes

The administration of President Donald Trump has paid close attention to the steel industry this year, placing a 50 percent tariff on most imported steel and brokering a merger agreement between United States Steel Corp. and Nippon Steel Corp.

Tariff advocates have said the measures are necessary in the face of global steel production overcapacity, with China (which makes more than half the world's steel while having 17 percent of its population) most often pointed to as the culprit.

As of late August, steelmakers in Canada and some officials in the U.S. remain among those who say further changes and adjustments are needed to steel trading policies.

In Canada, the Ottawa, Ontario-based Canadian Steel Producers Association (CSPA) has expressed dismay that while the U.S. has a tariff on Canadian steel, the government of Canada has taken few measures to place duties on steel arriving in that nation.

“The fact is that a significant volume of steel is entering Canada from the U.S. without a tariff of any sort,” CSPA President and CEO Catherine Cobden says in an Aug. 22 statement.

“We are simply looking for the government of Canada to ensure reciprocal treatment for all U.S. steel entering our country on products we produce. Currently, 83 percent of all imported U.S. steel could be produced in Canada, but instead they get free access to the Canadian markets while our industry suffers.

“Reciprocal tariffs protect Canada’s industries and workers during this trade war," she continues.  “We are eager to meet with the government of Canada to get this right.”

Last month, Cleveland-Cliffs CEO Lourenco Goncalves expressed a similar sentiment, urging the Canadian government not to lock in the import levels of 2024 "that basically killed the Canadian steel industry.” (Cliffs owns a large-volume mill in Canada.)

Goncalves urged Canadian officials to respond strongly to the U.S. tariffs.

“They need to grow a pair and understand that Canada is a very good country with a lot of potential, with a lot of critical minerals [and] with a lot of things that can make it a powerhouse," he says.

In Washington, two representatives of the Congressional Steel Caucus sent a letter last week to Commerce Department Secretary Howard Lutnick and the Trump administration urging them to reach a multilateral agreement to contain global excess steel capacity.

The letter from Reps. Frank Mrvan (D-Indiana) and Rick Crawford (R-Arkansas) includes support for Section 232 tariffs and urges Lutnick’s department to address the inability to reach a multilateral agreement to contain global excess steel capacity, driven by nonmarket economies.

“It is clear that there must be more robust protections in place," the letter says.

Regarding overcapacity, Mrvan and Crawford point to Organization for Economic Cooperation and Development (OECD) research that predicts global steel overcapacity will grow by nearly 120 million metric tons in the next few years, reaching a staggering 721 million metric tons by 2027.

The Congressional representatives say, in their letter, “To put this in perspective, that figure is roughly nine times the total U.S. steel production in 2024. In combination with stagnant demand, overcapacity is driving a sustained surge in exports from countries that produce far more than they consume. Notably, exports from China hit a record 118 million metric tons in 2024, displacing production globally.

“We urge you to continue promoting policies that crack down on unfair trade practices, close prior loopholes that have directly harmed domestic producers and allow the American steel industry and its workers to thrive.”