US-based steel executives held court with congressional representatives in Washington on Wednesday for a hearing to discuss the state of the domestic steel industry -- particularly global overcapacity -- in the wake of President Donald Trump announcing he will impose 25% steel tariffs from March 23.
"The president got it right," said Nucor CEO John Ferriola. "By imposing tariffs on imported steel, President Trump is sending a strong message that dumping steel into our market will no longer be tolerated."
Ferriola added the tariffs "will help level the playing field and will lead to increased capacity utilization for domestic steelmakers."
"The tariffs will further enable us to keep doing what we have been doing for decades -- invest in our teammates, our facilities and new technology," he said.
US Steel CEO David Burritt said in testimony that with Trump's "strong Section 232 action, the American steel industry is beginning to see a level playing field."
"For decades, foreign steel producers have targeted America's open market with a flood of imports," Burritt said. "Unfair and illegal practices undercut the US steel industry, jeopardizing our national security and leading to tens of thousands of lost jobs."
After Trump announced the tariffs, US Steel said it planned to restart one of two blast furnaces and the steelmaking facilities at its Granite City Works in Illinois.
John Brett, CEO of ArcelorMittal USA, noted that China is by far the world's largest steel exporter.
"Fueled by government subsidies, its steel exports increased dramatically in the last decade," growing to 112 million mt in 2015 from less than 25 million mt in 2009, he said.
"While this number has declined recently, China still exports more steel than the next three exporting countries -- Japan, South Korea, and Russia -- combined," Brett said.
He added ArcelorMittal feels the "threat of Chinese steel everywhere we operate."
John Adams, president of defense consultancy Guardian Six and a retired brigadier general in the US Army, said reliance on foreign sources of steel, especially from strategic competitors, results in uncertain supply for critical national requirements, especially in a crisis.
"Our nation's security rests on a military equipped with the technology, weapons systems, and platforms needed to protect our nation, supplemented with logistical and critical infrastructure," Adams said.
