Steel Caucus is urging President Trump to defend the American steel industry
and its workers during his visit to China.
In a letter to
Trump dated Tuesday--co-signed by U.S. Rep. Pete Visclosky, D-1st--the
caucus asks the president to “address the issues of chronic global steel
overcapacity, illegal government subsidies and state-owned enterprises, and
other trade distorting practices that have injured the American steel
Excerpts from the
steelworkers are constantly threatened by the unfair trade practices of
China. Today, China produces more steel than every other country in the
world combined and contributes over half of the 700 million metric tons of
global steel overcapacity. We know that America makes the most innovative
and cost effective steel in the world, but we cannot compete against China
when they do not follow trading norms.
“For years, China
has stated that it will work to address the issue of steel overcapacity by
imposing capacity reductions; however, those words continue to ring hollow.
. . . The rapid growth of the Chinese steel overcapacity is directly tied to
the proliferation of illegal government subsidies and state-owned
enterprises. It is estimated that 95 percent of steel produced by the top 20
Chinese steel groups comes from state-owned enterprises.
“Further, China has
consistently sold products at less than fair market value to offload their
overcapacity to other countries. The Department of Commerce (DOC) and the
U.S. International Trade Commission (ITC) have consistently taken corrective
actions by imposing steep antidumping (AD) and countervailing (CVD) duties,
sometimes in excess of 200 percent, on Chinese steel products that were
found to be traded unfairly. Unfortunately, often times when these companies
and their workers receive relief from the AD/CVD orders, the damage has
already been done.
“China must do more
to address these issues and ensure that their steel producers are operating
by fair market principles. In your discussions during your visit with
Chinese government officials, we respectfully ask that you not only raise
these issues but defend the American steel industry, which is essential to
our country’s national economy and our national security.”