Nucor’s CEO raises concerns over rebar and other steel products, while Cliffs’ CEO accuses Mexico of “bad behavior” in the steel market.
The US government has imposed tariffs on steel and aluminum shipments arriving from Mexico to prevent China from circumventing existing levies. However, top executives at two major US steelmakers believe that more needs to be done to protect the domestic industry.
Nucor Corp.’s CEO, Leon Topalian, and Cleveland-Cliffs Inc.’s CEO, Lourenco Goncalves, expressed concerns during their quarterly earnings calls that recent measures by the Biden administration do not go far enough. The executives called for stricter trade restrictions to prevent the dumping of steel products into American markets.
The US has applied tariffs to steel and aluminum shipments arriving from Mexico in an effort to prevent China from using transshipments to circumvent existing levies. The measure, announced on July 10, imposes a 25% tariff on steel that was not melted and poured in Mexico, the US, or Canada.
“We believe it’s just the first step,” Topalian said. “Nucor will continue to advocate for a level playing field in Washington, regardless of the administration, to protect this industry from illegally dumping subsidized steels into the shores of the United States.”
Source: Bloomberg
