Analysis
June 25, 2026
Domestic steelmakers tell Congress tariffs, demand fueling wave of steel investments
Written by Laura Miller
Domestic steelmakers told the Congressional Steel Caucus that strong trade enforcement and Section 232 tariffs continue to drive higher production, new investment, and facility restarts nationwide.
State of steel
Industry representatives from domestic steelmakers said at a Steel Caucus hearing on Wednesday that the combination of tariffs, demand growth, and federal investment has created the strongest operating environment for steel in years.
“Today, the American steel industry is performing very well. Resilient demand, effective trade policies, and world‑class steelmaking capabilities are helping domestic producers compete at the highest levels,” Nucor Chair and CEO Leon Topalian reported.
Likewise, Todd Young, VP of government affairs at U.S. Steel, said, “The state of American steel is both strong and strengthening. Demand is solid, reindustrialization is underway, trade enforcement is robust.”
Tariffs “working as intended”
Nucor told the Caucus US demand remains solid and credited tariffs for a sharp drop in imports. “Since the full reinstatement of 232 in 2025, import market share has dropped by more than 30%,” said Topalian. “I have never seen in my 30-year career import levels where they’re at today. They’re the lowest levels I’ve ever seen in my 30 years.” The Charlotte, N.C.-based company has invested more than $20 billion in US operations since 2020 and added 10,000 jobs.
Patrick Bloom, EVP of government relations at Cleveland-Cliffs, said the tariff program is “working exactly as intended.” Providing testimony on behalf of the American Iron and Steel Institute (AISI), he reported imports now account for 15% of domestic consumption, and capacity utilization has climbed above 80%. Cliffs has restarted idled lines in Ohio and Indiana and is preparing a major blast furnace rebuild and cogeneration project at its Middletown Works.
“No single policy has done more to strengthen the American steel industry than enforceable steel tariffs,” stated Kris Westbrooks, president and COO of Ohio-based Metallus, representing the Steel Manufacturers Association (SMA).
Lawmakers pressed witnesses on how the Trump administration’s tariff structure interacts across programs. Steel producers encouraged the stacking of Section 232 and 301 tariffs. Together with anti-dumping and countervailing duties, this creates a more complete shield against subsidized imports, they said. This combined approach has helped “level the playing field” and reduced the incentive to engage in transshipment and circumvention of derivative products.
USS details major capital projects
U.S. Steel outlined upgrades across its footprint, highlighting a $2.5 billion investment in the Mon Valley and a $1.9 billion outlay to build a DRI plant in Arkansas. A $350 million blast furnace reline and hot-strip mill project are underway at Gary Works. Additionally, USS plans to restart the Gary Tin Mill in early 2027.
The Pittsburgh-based steelmaker confirmed it restarted the Granite City Works B blast furnace in March and hired about 400 workers to support the restart. Steel is “again being melted and made in Granite City… it’s performing very well right now,” said Todd Young, VP of governmental affairs.
Union pushes for long-term commitments
United Steelworkers International President Roxanne Brown stressed the importance of long-term commitments. She said the Granite City restart has “meant everything… this has been an infusion of life and hope for our members.” She urged the Caucus to strengthen trade laws and close loopholes that allow indirect steel imports to enter the market.
Lawmakers’ support
Caucus members expressed bipartisan support for the domestic industry’s asks: maintaining Section 232 tariffs, tightening USMCA rules of origin, and passing the Leveling the Playing Field Act 2.0. They additionally cautioned on Chinese overcapacity and transshipment, which continue to threaten domestic production.
Vice Chair Frank Mrvan (D-Ind.) revealed the Caucus is “closely monitoring the Section 301 investigation on excess capacity, and encouraged the administration to selectively stack remedies from this investigation on top of existing 232 tariffs.”
As written in its statements of purpose, according to Caucus Chair Rick Crawford (R-Ark.), “The Steel Caucus exists to form a bipartisan coalition… to advocate on behalf of the steel industry and steelworkers to Congress and the executive branch as they… create, direct, and implement legislation and policies that affect these constituencies.”
