The White House's tariff regime is mainly intended to support U.
S. manufacturing, but an avalanche of import tax increases could have the opposite effect, jeopardizing new steel mill construction projects, according to comments from industry representatives during the ongoing trade hearing process.
The U.
S. steel industry has supported the 50 percent tariffs on steel imports that President Donald Trump imposed under Section 232 in June, as these policies have limited imports and allowed major domestic steel companies to ship record volumes this year.
But steel producers looking to modernize or build new plants face higher costs for importing steel machinery and equipment, according to public comments during the U.
S. Department of Commerce's investigation into the impact of importing machinery and robotics on national security, which began last month.
The agency said the investigation could lead to tariffs on industrial stamping and pressing machines, lathes and milling machines, grinding equipment, and cutting and welding machines, although it did not disclose specific products or import codes that could face import restrictions.
U.
S. steel companies, industrial equipment manufacturers, and metal processors warned of rising costs due to potential tariffs on industrial equipment in public comments released by the Commerce Department on October 22.
Pacific Steel Group is building a rebar manufacturing plant in the Mojave Desert in California, which is scheduled to be operational in 2027. This will be the first new steel mill in California in more than 50 years to use specialized equipment for electric arc furnaces from the Italian manufacturer Danieli.
"Since there are no domestic alternatives that meet Pacific Steel's needs, the project's progress depends entirely on these imports," the company said in public comments.
Pacific Steel said it supports the current steel tariffs of 50 percent.
However, the company acknowledged that import taxes had increased the cost of building a steel mill.
"These additional costs place a significant financial burden on the project and risk delaying or even jeopardizing the successful completion of the American steel mill," the company said.
Pacific Steel's comments reflect similar sentiments shared by Arkansas-based steelmaker Hybar last month.
Hybar company has applied for
