Can Trump revive American steel?

During his famous pre-election appearance on “The Joe Rogan Experience,” Donald Trump discussed his use of tariffs to bolster American industries, including steel. This was one of the less colorful moments of the interview, but it is worth revisiting.

Trump said, “We will not allow the enemy to come in and take our jobs and take our factories … unless they pay a big price. And the big price is tariffs.”

Trump’s critics focus entirely on the tariffs and not on the unmatchable ferocity of Donald Trump. All he has to do is threaten tariffs. We’ve seen this already.

Trump is the “Tariff Man,” and for the American steel industry, that title served its mission during Trump’s first term.

When Trump imposed a 25% tariff on imported steel in 2018, skeptics warned of trade wars and rising costs, but for the steelworkers who’d spent decades watching their mills close, it was a shot of adrenaline. Domestic production surged, idle furnaces roared back to life, and companies like U.S. Steel announced new investments.

Trump made it clear that steel is a symbol of American might. “Our steel industry is thriving again,” he declared to Rogan.

To understand the industry’s trajectory, we need to examine its rise, its precipitous fall, and its likely future.

Heavy metal

If America had a literal spine, it would be made of steel. At its peak in the 1950s, the U.S. steel industry was a titan, producing 117 million tons of steel annually, with companies like U.S. Steel leading the charge.

But by the 1980s, the clamor of American mills had quieted, and the question remains: What led to the decline of an industry once synonymous with American might?

The decline of the American steel industry cannot be attributed to a single cause. Instead, it was a combination of forces that steadily eroded its dominance.

Unions played a crucial role. While they initially fought for fair wages and working conditions, by the 1970s and 1980s, the push for higher wages and benefits often put American steel companies at a competitive disadvantage compared to foreign producers.

Some critics argue that union demands outpaced the industry’s ability to adapt to a rapidly changing global market, contributing to the industry’s financial woes.

Imports also hammered American steel. Countries like Japan and Germany, and later China, began producing steel at lower costs, often with significant government subsidies. U.S. tariffs were inconsistent and sometimes lackluster, allowing foreign steel to flood the market, undercutting domestic prices and pushing American mills out of business.

In the 1970s and 1980s, this influx of cheaper steel devastated U.S. producers, resulting in widespread mill closures and mass layoffs.

Automation compounded the problem. Technological advances, including continuous casting and automated production, allowed steel to be produced more efficiently, requiring fewer workers.

While this made the remaining steel mills more productive, it also hollowed out the workforce. Towns built around the labor-intensive steel industry were left reeling and quiet, as generations of steelworkers found themselves without jobs.

The effect of U.S. tariffs on steel has been a contentious issue for decades. Proponents argue that tariffs are necessary to protect an industry vital to national security and American manufacturing.

Critics, however, contend that tariffs lead to trade wars, increased costs for American businesses reliant on steel, and retaliation from other countries.

While I’m by no means an expert on tariffs — at all — I notice that Trump’s critics focus entirely on the tariffs and not the unmatchable ferocity of Donald Trump. All he has to do is threaten tariffs. We’ve seen this already.

Steely Dan

Few people have had as significant an impact on the modern steel industry as Dan DiMicco, former CEO of Nucor Corporation.

His 2010 book, “American Made: Why Making Things Will Return Us to Greatness,” outlines his vision for reviving American industry through fair trade practices, reduced regulation, and a focus on domestic production.

To be frank, a lot of it is too nuanced for an artsy knob like me. But I bought the book and read it with an open mind.

Under DiMicco’s leadership, Nucor became the largest steel producer in the United States by embracing a unique strategy: Focus on lean production and use scrap-based electric arc furnaces, which are more energy-efficient than traditional blast furnaces. This allowed Nucor to stay competitive even in the face of global competition and shifting economic conditions.

DiMicco has long been an outspoken advocate for U.S. manufacturing and a staunch supporter of Donald Trump. He pushed for the 2018 steel tariffs, arguing that they were necessary to protect U.S. jobs and ensure national security.

Looking ahead, DiMicco envisions a future in which the U.S. reclaims its manufacturing dominance, but only if the government takes aggressive steps to protect its industries. In his view, tariffs, incentives for domestic production, and efforts to reduce dependency on foreign suppliers — particularly from China — are critical to the future of American steel.

Adapt or die

Despite the industry’s challenges, there is still hope for a revival. Companies like Nucor are investing in cleaner, more efficient technologies, including electric arc furnaces and carbon capture methods, to reduce their environmental impact and remain competitive.

China isn’t the powerhouse it has claimed to be, or at least not in relation to its daunting population.

The future of steel in America will depend on the industry’s ability to adapt to global competition and technological change. While we’re at it, it’s time for the climatists to aim their carbon-footed ire at the countries actually responsible for apathetic pollution.

The era of massive, labor-intensive mills may be over, but if the industry can embrace innovation while maintaining a focus on fair trade and national security, it could once again play a central role in America’s economy.

The story of American steel is far from over. It remains a vital thread in the fabric of the nation, even if its future looks very different from its past.

But hey, with Trump in charge, that’s a piece of cake. Just ask his buddies Elon Musk and Joe Rogan.