Zekelman wins landmark case blocking Mexican conduit in Pennsylvania public works

Pennsylvania-based Wheatland Tube first filed the petition in 2024, citing Mexico’s dumping of steel products at unfairly low prices. The filing came shortly after the company announced the closure of a tube facility in Chicago, blaming imported steel conduit from Mexico.

The victory strengthens Zekelman’s broader push for fair trade and reinforces Pennsylvania’s steel industry in the face of global competition, according to the company.

Barry Zekelman weighs in on the ruling

In an interview following the decision, Barry Zekelman, executive chairman and CEO of the parent company, emphasized that conduit is a critical component in nearly all public works projects.

“It’s really everywhere – hospitals, rail stations, water treatment plants, power plants. Any major project with structural and electrical work is going to have conduit,” he explained, underscoring the scale of the market and the importance of protecting domestic suppliers.

Zekelman added that the Pennsylvania case is “more than symbolic.” He described it as both a meaningful protection for local manufacturers and a message to foreign competitors. “We’re here to protect the US domestic market and use our product where tax dollars are being spent, in communities that benefit from companies like ours being there,” he said.

He tied the Pennsylvania ruling to the tangible reality of protecting blue-collar steel jobs, the well-paid, benefit-backed work that sustains communities. “This is what builds Middle America, and this is where the rubber meets the road today,” Zekelman stated.

Precedent beyond Pennsylvania

Mickey McNamara, general counsel for Zekelman Industries, noted the decision could serve as a model for other states.

“States often feel constrained by federal import-export laws, but rulings like this show they have tools to safeguard taxpayer-funded projects. Pennsylvania had a particularly strong statute, and we leveraged it to protect hundreds of local jobs,” McNamara remarked.

“We were a little bit aggressive and creative on it, which I think defines who we are as an organization,” he added.

Both executives pointed out that similar laws exist in other jurisdictions, though they are often overlooked.

“Now, as we’re looking to build a manufacturing base to be able to support our domestic industries, it’s time to dust off these laws and enforce them,” McNamara said, suggesting Pennsylvania’s precedent may encourage other states to act.

Wrapping up and moving forward

Zekelman characterized the previous presidential administration as inattentive to its trade concerns. Last year, this pushed his company to pursue other legal remedies, including this state-level case.

Both Zekelman and McNamara believe the Pennsylvania case demonstrates how aggressive, creative strategies can protect domestic steelmakers when federal action falls short.

Another remedy the company chose to pursue in 2024 was a Section 232 petition seeking to use the Office of Trade Relations to enforce trade agreements between the two countries. The Biden administration responded with a letter saying they were “doing a lot,” but declined to take further action.

A third remedy last year was the filing of a separate lawsuit in Washington. However, Zekelman Industries ultimately withdrew the case because continuing would have been too costly and time-consuming.

Instead, they decided to focus efforts on advocacy and collaboration with the current administration, which they feel is taking a stronger stance on trade enforcement. This administration’s Section 232 derivative inclusion request process is a 180-degree turn from the previous administration’s policy of issuing exclusions.

Sharon Tube, a division of Zekelman Industries, currently has an inclusion request pending with the Commerce Department. Signing on with other US cold-drawn mechanical tubing producers and chrome processors, Sharon Tube wants derivative treatment for cylinder barrels, pumps, and select fluid/pneumatic/mechanical power components made from steel tubes and bars.

Zekelman Industries expects decisions on the inclusion request, and hundreds of others, by the end of the year. “Assuming the decision is affirmative (as we anticipate), tariffs would go into effect very shortly thereafter,” McNamara noted.