The CEO of Nucor Corp. says he is in full agreement with President Donald TrumpƵs recent decision to remove the exceptions and exemptions from his 2018 tariffs on steel.
ƵIf you go back and look at the backdrop of the steel industry over the last 20 years, weƵve been in a trade war with China and other nations for a very long time,Ƶ Leon J. Topalian, NucorƵs president, CEO and chairman, said in on Tuesday, Feb. 11.
ƵItƵs not free trade; itƵs fair trade in creating a level playing field, and I believe these tariffs are going to do that.Ƶ
TrumpƵs decision on Feb. 10 supersedes previous agreements with key U.S. trading partners such as the European Union and Japan, and it revokes tariff exemptions previously granted to Canada and Mexico.
Topalian endorsed TrumpƵs decision, but the United Steelworkers union disagrees with it.
ƵOur union welcomes President Donald TrumpƵs efforts to contain the global overcapacity that has for too long enabled bad actors like China to flood the global market with its unfairly traded products, resulting in surging imports into the United States, especially from Mexico,Ƶ United Steelworkers International President David McCall said in a statement issued Feb. 10.
ƵAt the same time, we must distinguish between trusted trade partners, like Canada, and those who are seeking to undercut our industries as they work to dominate the global market.
ƵCanada is not the problem. Indeed, Canada has taken steps to coordinate their trade policies with the U.S. to respond to unfair foreign trade, and applying across-the-board tariffs ultimately hurts workers on both sides of the border.
ƵWhile our union absolutely views tariffs as one of many important tools we need to employ to rebalance our trade relationships, we urge a measured approach that both strengthens our manufacturing sector and accounts for our relationships with our allies, like Canada, who play by the rules.Ƶ
In the CNBC interview, Topalian said countries such as China used shipping routes through Canada and Mexico to get around American tariffs on steel from those countries. Topalian said the U.S. consumes about 100 million tons of steel per year. About 25% of that is imports.
ƵThat number should be closer to 10%,Ƶ he said. Of the 25% of consumption that is imported, about 38% comes in through Canada and Mexico, much of it originating in China and elsewhere, Topalian said.
ƵWeƵve got to create a level playing field where we can have the healthy steel industry continue to be vibrant, continue to reinvest in our domestic mills, continue to build facilities like we are in West Virginia, Lexington, North Carolina, Kingman, Arizona and reinvest across this nation.Ƶ
According to preliminary figures compiled by the American Iron and Steel Institute, U.S. steelmakers shipped 86.1 million tons of steel last year, down about 3.6% from 89.3 million tons in 2023.
AISI numbers showed net imports of about 28.86 million tons last year, up about 2.5% from 2023. Four countries provided more than half of steel imports: Canada, 6.56 million tons; Brazil, 4.5 million; Mexico, 3.5 million; and South Korea, 2.8 million.
The AISI endorsed TrumpƵs tariff action. In its statement issued Thursday, AISI President and CEO Kevin Dempsey said, ƵAISI applauds President TrumpƵs action today ordering the development of a comprehensive plan for restoring fairness in U.S. trade relationships and countering non-reciprocal trading arrangements. American steel producers know well the negative impact of foreign unfair trade practices, including subsidies, currency manipulation and other unfair and discriminatory policies and practices, on domestic industries and their workers.Ƶ
Nucor is building a $3.5 billion sheet steel mill at the Mason County, West Virginia, community of Apple Grove along the Ohio River about 28 miles north of downtown Huntington and 15 miles south of Point Pleasant.
When the CNBC interviewer asked Topalian if the tariffs would affect NucorƵs capital expenditures, he replied, ƵOver the last five years, weƵre on about a $16 billion capital campaign that will culminate next year at the end of next year with the startup of West Virginia.
ƵHowever, again, thereƵs optimism with our customers and our customersƵ customers, so Nucor has the highest credit rating, we have cash on hand, weƵre in a very, very healthy position to be able to continue to grow both through M&A (merger and acquisition) as well as organic, so yeah, you can continue to expect that Nucor is going to continue to invest in our future.Ƶ
