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Tariffs on imported steel may sustain jobs in Butler

Friday’s edition of the venerable NPR Morning Edition radio news broadcast featured a report about NLMK Pennsylvania, a Russian-owned steel mill in neighboring Mercer County. The story, titled “Trump’s tariffs worry a small steel city in Pennsylvania,” quotes some of the 750 steelworkers employed by the NLMK plant in Farrell.

The employees are worried about a 25 percent tariff imposed by President Trump because NLMK Pennsylvania processes steel slabs imported from its parent company Novolipetsk Steel, Russia’s top steelmaker. They worry that the plant might close.

NLMK has applied for an exemption from the tariff, saying it can’t get enough U.S.-made steel to supply its Farrell operations. The Commerce Department is expected to rule soon on the request.

The exemption should be denied.

As the NPR piece points out, “Critics say NLMK is exaggerating its supply problem because it wants to continue buying slabs at a steep discount from its parent company in Russia, whose majority shareholder Vladimir Lisin is the wealthiest person in that country.”

But even more important, the tariff is designed to fix any problem with a domestic steel supply as well, an industry advocate says. Scott Paul, president of the Alliance for Americn Manufacturing, called NLMK’s request for an exemption “the boy who cried wolf.”

“Paul is skeptical that NLMK would actually close its Pennsylvania mill because of the steel tariffs,” NPR reported. “‘A lot of companies will need to make adjustments ... finding new domestic suppliers,’ he said.”

That prospect is music to the ears of a city like Butler and one of its mainstay employers, AK Steel. How much do you need? How soon do you need it? We’re an hour’s ride away — just a straight shot across 422 and up I-376.

The issue is not complicated: The tariffs take away a Russian oligarch’s ability to line his pockets with steel profits that rightfully should remain in Western Pennsylvania. They level the playing field allowing companies like AK to employ more steel workers and produce more American steel stock to supply plants like NLMK Farrell.

AK Steel is confident it can supply every bit — and any type — of steel that NLMK could use.

“AK Steel has both the capacity and capability to supply those slabs from our U.S. operations made by American workers,” Lisa H. Jester, AK Steel corporate manager of communications told the Butler Eagle in an email Monday. The company formalized this capability with the Commerce Department when it filed an objection to NLMK’s product exclusion request, Jester said, adding that the steel could come from the combined output of AK plants in Dearborn, Mich., and Middletown, Ohio, as well as Butler.

As for the perceived threat of NLMK pulling out of Mercer County, it seems unlikely. The Russian steel maker came here because of the region’s vast knowledge and experience with making steel. The heritage of craftsmanship that brought NLMK here will keep NLMK here — and it should not have any qualms about paying full price for the privilege.

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