Mr. Speaker, I rise today to introduce a resolution regarding the Steel Safeguard Program that was initiated on March 5, 2002. This resolution asks for little, but could mean everything to steel-consuming manufacturers in this country. By…
Mr. Speaker, I rise today to introduce a resolution regarding the Steel Safeguard Program that was initiated on March 5, 2002. This resolution asks for little, but could mean everything to steel-consuming manufacturers in this country.
By introducing this resolution I, along with 51 of my colleagues, are merely asking that the President direct the International Trade Commission (ITC) to include in its mid-term review of the Steel Safeguard Program an assessment of the Program's impact on steel consumers. Currently the ITC is under no obligation to report on these effects. By affirmatively accepting our request, the President will have a complete picture of the economic effects of the Program when he considers in September of this year whether or not to extend the tariffs for another eighteen months.
Last March, the Bush Administration imposed tariffs on imported steel, some as high as 30 percent, in an attempt to limit low-price imports in order to give our domestic steel industry time to reorganize and become more competitive. At that time, it was obvious that
steel-consuming manufacturers were going to feel pain, but we didn't know how bad the pain would be. Nobody knew how bad it would be.
Mr. Speaker, the pain is real and it is deep.
Since last year, I have been hearing stories of skyrocketing steel prices, broken contracts, and supply disruptions. Now, we have layoffs. Now, we have companies buying more steel from foreign countries exempt from the tariffs. And, now, more and more manufacturers, both large and small, are being forced to move production overseas. And once those jobs go, they aren't coming back.
Two days ago, I was joined by representatives from six automotive parts supply companies to discuss the effects of the tariffs. Let me give you just a taste of what these companies are doing to cope with the tariffs.
Arvin-Meritor, which is based Troy, Michigan, in my district, bought one million tons of steel globally last year. They recently closed down a Tennessee plant that employed 317 people in part because of higher steel prices and are now exploring options for buying cheaper steel from non-U.S. suppliers who are exempt from the tariffs.
Dura Automotive Systems, Inc., which is based in Rochester Hills, also in my district, cut 60 jobs after the tariffs were imposed and business was lost.
Metaldyne, which is based in Plymouth, Michigan, is expecting to source 30-40 percent of its steel from abroad within the next few years because of rising prices and supply shortages. They currently buy 98 percent of their steel domestically.
Dana Corp., which is based in Toledo, Ohio, is considering not only buying more steel from abroad, but buying components and finished parts from abroad as well because they can be made cheaper in foreign plants that don't have to pay inflated prices for steel.
All of these companies, and others throughout the steel consuming manufacturing industry, are forced to respond to this pain in order to remain globally competitive. Many of these companies will expand their purchases of finished steel products from overseas, because finished products are not covered by the tariffs. Sourcing parts from overseas causes more pain for companies up the manufacturing stream. Companies are being forced to make these decisions because of the steel tariffs.
Let's be clear. Right now, the unintended consequences of the steel tariffs are killing American jobs in steel consuming companies. This clearly was not the intent of the Steel Safeguard Program. This is the collateral damage. But we can't ignore the fact that the tariffs are costing jobs.
And I have to ask this question: what good will the tariffs have achieved if there are no customers left to buy steel from U.S. steel companies?
I am not here to criticize the President. In fact, I don't think the President would've supported these tariffs if he could've seen in a crystal ball the full damage they're causing. These effects have come about more rapidly and more severely than anyone predicted.
And let me emphasize that I fully support a healthy domestic steel industry. These are good American companies that employ good Americans.
But companies in my district and across the country are hurting. They are good American companies that employ good Americans. They deserve the consideration along with the steel industry when the steel tariff regime is reviewed.
This resolution is not anti-steel or pro-steel consumer. It is simply an attempt to ensure that when the President decides whether to extend the Steel Safeguard Program for another 18 months, he has all the information he needs to make the best choice for our nation's economy.
This is a modest request. We are not asking that the tariffs be lifted immediately and we're not attempting to change trade law. I urge all my colleagues to cosponsor this moderate, bipartisan resolution to simply consider the impact the steel tariffs have had on steel consumers.