Steel Company CEO Demands Expansion of Tariffs to Include Electrical Steels

SEATTLE (Scrap Monster): Lourenco Goncalves, chairman and CEO of Cleveland-Cliffs Inc. urged Trump administration to expand tariffs so as to include electrical steel that are imported into the country, mainly from Mexico and Canada. He also called for further strengthening of the trade law to enforce punishment to entities that deliberately evade U.S. tariffs.

Goncalves pointed out that the loopholes in the tariffs mechanism often allows foreign companies to evade tariffs either by rerouting them through other countries or by importing reprocessed goods. He noted that despite significantly higher number of anti-circumvention rulings by the Department of Commerce last year, steel products have managed to find their way into the country by evading tariffs.

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Further, he noted that swift action by U.S. officials to stem the flow of imports id necessary to save thousands of domestic steel jobs in the country. Nearly 1,500 jobs at Cleveland-Cliffs Inc.’s Butler,Pa., plant and nearly 100 jobs in Zanesville, Ohio are at risk, he noted. The demand was raised during his recent meeting with Commerce Secretary Wilbur Ross.

Meantime, the Commerce Department spokesperson reiterated its commitment to support U.S. steel companies through meaningful enforcement of trade remedy laws.