U.S. to probe imports that threaten AK Steel
U.S. Secretary of Commerce Wilbur Ross will investigate whether a slew of imports is threatening American companies, including AK Steel.
On Monday, Ross said an investigation will begin to determine whether high quantities of certain imports of electrical steel components impair national security.
These same components are made at AK Steel's Butler Works, which is owned by Cleveland-Cliffs, the Ohio-based company which absorbed AK Steel on March 13.
In March, Lourenco Goncalves, Cleveland-Cliffs' chairman and CEO, accused Asian countries of circumventing tariffs on these components by routing electrical steel through Mexico and Canada, where it undergoes minimal processing.
At the time, Goncalves told the Trump administration and other legislators that he would be forced to close locations if something was not done.
“We are confident that this self-initiated investigation will reinforce the critical nature of ensuring a reliable domestic supply ... to support electric power distribution and will address the circumvention of national security tariffs involving transformer laminations,” said Goncalves in a statement Monday.
In announcing the investigation, Ross specified the following products: laminations for stacked cores for incorporation into transformers, stacked and wound cores for incorporation into transformers, electrical transformers, and transformer regulators are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.
Goncalves said he appreciated the bipartisan support of the investigation.
“The integrity of America's electric grid and over 1,400 family-sustaining jobs at AK Steel's Butler Works in Pennsylvania and Zanesville Works in Ohio depend on speedy resolution of this investigation,” he said.
In a statement Monday, U.S. Rep. Mike Kelly, R-16th, said he had been working with Cleveland-Cliffs and the Trump administration to address the threat of unfair trade practices.
“As the last American producer of electrical steel products that are key components of the electrical grid ... AK Steel is a bedrock of our national security and the Butler economy,” Kelly said.
Kelly said he was thankful to Trump, Ross and his many colleagues for fighting for better trade practices that would help the local plant.
“Thank you also to Cleveland-Cliffs and the men and women of UAW 3303 for fighting alongside me to save these jobs,” he said.
Per Monday's news release, Ross's office said the inquiries and requests from multiple members of Congress prompted the investigation.
“The Department of Commerce will conduct a thorough, fair, and transparent review to determine the effects on the national security from imports of laminations for stacked cores for incorporation into transformers, stacked and wound cores for incorporation into transformers, electrical transformers, and transformer regulators,” Ross said.
