OPINION:
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A surge of millions of illegal migrants — including criminals and terrorists — isn’t the only threat the Biden administration is allowing across the southern border. President Biden and Vice President Kamala Harris have also failed to confront an influx of underpriced steel imports from Mexico, which is a blatant violation of a 2019 joint steel agreement.
This unchecked surge of Mexican steel has devastated American industries, forced factories to close and cost hundreds of good-paying American jobs. One of the most recent casualties is Zekelman Industries’ Wheatland Tube plant in Chicago, where nearly 250 workers will be laid off. All of this is directly because of the administration’s failure to curb the flood of cheap steel from Mexico.
When the U.S. signed the United States-Mexico-Canada Agreement in 2019, part of the deal included a joint steel agreement. It required Mexico to restrict its steel exports to 2015-2017 levels in exchange for the U.S. lifting Section 232 tariffs.
But Mexico quickly broke that promise. And since then, Mexican steel imports have surged to alarming levels far beyond the agreed baseline period. This has had disastrous consequences for U.S. manufacturers. For example, steel conduit imports from Mexico are nearly 500% above the baseline, with early 2024 data suggesting that number could climb to 700%. These imports account for over 87% of U.S. steel conduit imports, undermining American steel producers.
An economic analysis from our organization shows more than 1 million American jobs are at risk if this surge is not addressed. Other steel plants across the country are in danger of shutting down. These jobs pay far above the average wage in many communities — jobs critical to sustaining a middle class and building a strong economy.
The administration’s inaction has resulted in widespread consequences. The closing of Zekelman’s Chicago plant is just the latest example of the tangible harm caused by the failure to enforce trade agreements. Despite U.S. manufacturers and industry organizations repeatedly sounding the alarm, the Biden administration has refused to take meaningful action.
One of the most glaring failures is the administration’s refusal to impose tariffs or quotas on Mexican steel despite clear violations of the 2019 agreement. Under the Trump administration, tariffs were deployed effectively to protect American workers from unfair trade practices. By contrast, the Biden administration seems content to let Mexican steel imports flow unchecked, putting American jobs at risk and decimating communities.
The impact isn’t limited to a single city. Members of our organization have manufacturing facilities at risk across 34 states, including Ohio, Pennsylvania, Kentucky, Texas, Arizona and Illinois. Many of these plants are in underserved communities that rely on high-paying manufacturing jobs. The administration’s failure is costing jobs and eroding America’s industrial base, which is crucial for economic security.
Both Democrats and Republicans in Congress understand the urgency of the situation. Sen. Tom Cotton, Arkansas Republican, and Sen. Sherrod Brown, Ohio Democrat, introduced the bipartisan Stop Mexico’s Steel Surge Act in March.
The bill would reinstate a 25% tariff on Mexican steel imports. This legislation enjoys broad bipartisan support, underscoring the consensus around the need to address this crisis. Sens. Marco Rubio, Florida Republican, Mike Braun, Indiana Republican, and Bob Casey, Pennsylvania Democrat, recently urged the administration to increase tariffs on Mexican steel.
The solution is clear: The Biden administration must immediately impose quotas and increase tariffs on Mexican steel to bring imports back in line with agreed-upon levels. This is the only way to protect American workers and industries from Mexico’s blatant violations.
If the Biden administration continues to ignore the problem, more factories will close, and more American workers will lose their jobs. It’s time for President Biden and Vice President Kamala Harris to demonstrate that they are serious about standing up for American workers and stopping unfair trade practices from wreaking further havoc on our economy.
• Nick Iacovella is senior vice president of public affairs and communications at the Coalition for a Prosperous America. Follow him @nickiacovella.
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