In its assessment, AISI listed five key reasons for continuing the tariffs.
Preserve National Security
According to AISI, a strong domestic steel industry is essential for the US defense infrastructure. Section 232 recognizes the strategic importance of steel for military equipment, critical infrastructure, and emergency response systems.
Strengthen American Jobs and Manufacturing
The American steel industry contributes to local economies by providing high-paying jobs across the country. Section 232 tariffs support domestic production by providing a level playing field for domestic producers in global competition.
Addressing Global Steel Overcapacity
AISI, particularly led by China, global steel overcapacity and production continue to grow, while overall global steel demand is being affected by the sharp decline in China's construction sector. As a result, China's steel exports to the world have more than doubled since 2020, reaching 118 million metric tons in 2024, which is more than North America's total steel production. Given these challenging international conditions, which show no signs of improvement, steel tariffs are emphasized as a means to help prevent new import increases that could harm American steel producers and workers.
Ensure Long-Term Investments
American steel producers have made billions of dollars in modernization investments in recent years. AISI states that a stable and competitive domestic market environment is necessary to sustain these investments, and that Section 232 tariffs provide this environment.
Support Sustainability
The U.S. steel industry is noted as one of the cleanest and most energy-efficient sectors among major producers worldwide. AISI noted that a strong domestic industry supported by tariffs is essential to maintain a low-carbon production structure. This will enable the U.S. to continue modernizing its steel production facilities that support clean energy technologies.
AISI's statement once again highlights that Section 232 tariffs are not only an economic tool, but also an environmental and strategic policy tool.
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