Op-Ed: Strong trade enforcement builds prosperity and security

I don’t think Lewis Leibowitz considered these points while criticizing tariffs in his excessively pro-free-trade column, “Where is the voice of the consumer?” on May 5.

Fair trade—premised on mutual respect, evenly balanced scales, and a shared commitment to the rules—helps to strengthen international bonds and build prosperity for working people.

But unfair trade, conducted for nefarious economic and political purposes, foments discord between nations while trying to pit workers against each other.

David McCall, International President, USW

As a union activist since the 1970s, I witnessed firsthand the devastating impact of unfair trade on workers, families, and communities. My earliest work with the union included establishing a food bank to support laid-off USW members and their families in Burns Harbor, Ind.

Mr. Leibowitz portrays tariffs as a way of stacking the deck in our favor and stiff-arming the foreign companies seeking honest business in US markets.

But nothing could be further from the truth.

Tariffs—along with countervailing and anti-dumping duties—hold cheaters accountable and help to level the playing field for American workers.

Trade enforcement sends a zero-tolerance message to foreign companies that undersell US competitors only because they receive improper subsidies from their own governments, use child or prison labor, subject workers to unsafe conditions, pollute the environment with impunity, or route products through third countries to evade trade rules.

Tariffs safeguard industries crucial for American infrastructure and defense. They support robust supply chains and help to ensure that we will never again run short of critical goods as we did during the pandemic.

For example, the Section 232 tariffs, continued by the Biden administration, are working in tandem with the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and the CHIPS and Science Act to supercharge the nation’s economy in the wake of COVID-19.

My union proudly fought for the Section 232 tariffs and then helped to push the infrastructure legislation and other job-creating bills through Congress.

The truth is that strong trade enforcement reflects the voice of the US consumer, who plays by the rules and expects others to do the same. Trade enforcement also meets the needs of the American parent, who wants to be sure the food and manufactured products introduced into the home come from companies adhering to the strictest possible manufacturing standards.

And trade enforcement represents the will of the voters and taxpayers who want to build America’s economy, not China’s or any other country’s.

At the request of a USW-led coalition, the Biden administration recently agreed to open an investigation into China’s illegal efforts to capture the global shipbuilding market and dominate global logistics networks.

China’s scheme to hijack the commercial shipbuilding industry has cost the US dozens of shipyards and tens of thousands of jobs since the 1980s. It’s also left the country dangerously dependent on ships that China builds, owns, and operates. China can cut off access to these ships at any time, for any reason, potentially choking off both the transportation of US goods and the sealift capacity our military needs in times of crisis.

Now, my union and our allies intend to revitalize American shipbuilding and grow jobs in the numerous industries making up shipbuilding supply chains. That’s simply common-sense economic and security policy—and ensures that America remains a bastion of strength and independence.

Union workers and American manufacturers are not only vigilant but innovative and resilient.

My union fights for tens of millions in capital investments to keep plants viable, and our members take the lead in pioneering new technology in cutting-edge industries, such as electric batteries and vehicles. We’re the most efficient workers in the world, and we’ll outcompete anyone in a fair fight.

When Mr. Leibowitz argues that trade promotes world peace, he is only half right.

Fair trade—premised on mutual respect, evenly balanced scales, and a shared commitment to the rules—helps to strengthen international bonds and build prosperity for working people.

But unfair trade, conducted for nefarious economic and political purposes, foments discord between nations while trying to pit workers against each other.

My union has long stood up to cheaters and other bad actors. And we always will.

Editor’s note

SMU welcomes opinions from across the steel industry. We’re very happy to welcome the thoughts above from USW International President David McCall. We also appreciated the opinions shared by Nippon Steel earlier this year. If you have an opinion you’d like to express to the broader steel community, please contact us at info@steelmarketupdate.com.