The U.S. Steel Sector Would Be Booming Even Without Trump’s Tariffs
Biden’s White House is weighing whether to peel back some protections to placate European allies and ease cost pressures on key industries like autos.
Joe Biden at a 2020 campaign event with steelworkers in Detroit.
Photographer: Patrick Semansky/AP Photo
When President Donald Trump slapped 25% tariffs on foreign-made steel in early 2018, roiling markets and rankling allies, American steel was hurting. Employment numbers in the industry had hit a new low the previous year, annual mill usage was hovering near just 70% of capacity, and cheaper imports were flooding the U.S. “We must protect our country and our workers. Our steel industry is in bad shape,” Trump tweeted in March 2018. “IF YOU DON’T HAVE STEEL, YOU DON’T HAVE A COUNTRY!”
Three and a half years later, the sector is in a very different place. America’s steel mills have been producing at their highest levels since the Great Recession, and their owners are on track to book their fattest profits ever, thanks to record high prices. As the global economy bounces back from its pandemic lows, sales of steel-made products ranging from paper clips to cars to dishwashers are through the roof. Wall Street analysts predict that 120-year-old U.S. Steel Corp. will earn $5.5 billion in 2021 by one closely watched measure, more than it did in all of Trump’s presidency. Nucor Corp., the biggest North American producer, could earn $9.3 billion—more than double its previous best year and on pace to be a larger annual haul than either Nike Inc. or Netflix Inc. is expected to book.