Commerce investigates impact of steel imports on national security

A May 24 hearing addressed the debate between steel corporations in the U.S. and China in an investigation into the impact of steel imports on U.S. national security.    In a May 24 hearing on the Section 232 Investigation of the Trade Expansion Act of 1962, executives from steel producers like Nucor Corps. and AK Steel Holding Corps. testified in favor increased defenses against a flood of Chinese steel production coming into the U.S.
   The U.S. Department of Commerce in April initiated an investigation into the effects of imported steel on national security as part of President Trump’s “America First” program to keep jobs in the U.S. and encourage domestic manufacturing.
   At the hearing, CEOs of America’s largest steelmakers said global overcapacity of the metal is at “crisis levels,” and urged the U.S. to determine that cheap steel imports are endangering national security.
   However, Yu Gu, first secretary at China’s Ministry of Commerce said at the hearing, “China’s steel exports to the U.S. have declined by more than 67 percent since September 2015,” therefore, the U.S. has enough domestic supply.
   And according to a report  from Bloomberg on Wednesday, domestic steel giants like Nucor and AK Steel have posted record growth numbers since the slew of trade cases that boosted many companies in 2016.
   Last year, Nucor saw growth rise 48 percent, the most since 2006, and U.S. Steel, previously facing large amounts of debt just a year before, was able to sell shares to generate financial flexibility and use for capital expenditures, reported Bloomberg.
   The Department of Commerce earlier this year opened a similar Section 232 investigation into aluminum imports. Should the investigation find that aluminum imports impact U.S. national security, Section 232 gives President Trump broad powers to adjust aluminum imports.
   Commerce expects to conclude its steel investigation by the end of June, before the 270-day deadline that typically is set for a Section 232 investigation. Interested parties or those affected by import restrictions on steel are invited to submit comments to the department by May 31.