Trump’s trade crackdown may be US Steel’s last shot

Cleveland-Cliffs, America’s fourth-largest steel producer, stunned West Virginia earlier this month by shelving plans to reopen a shuttered steel mill as an electrical transformer plant.

The project would have restored 600 of the 1,000 jobs lost when the company idled the mill in February. Instead, the cancellation marked just one of several disappointing announcements since March, all driven by the company’s ongoing financial problems. In total, Cleveland-Cliffs plans to idle six facilities across Pennsylvania and the Midwest.

If the choice is between watching Cleveland-Cliffs and US Steel collapse or breathing new life into one through foreign direct investment, Trump won’t hesitate.

And who suffers most? Steelworkers and their families — the people left out of the headlines.

I’ve tracked the steel industry’s decline for decades, first as the lone free-market conservative senior adviser at the Alliance for American Manufacturing, and later through various economic roles in Washington, D.C. Cleveland-Cliffs’ troubles are just the latest symptoms of a chronically ailing American steel sector, burdened by nearly a dozen deeply rooted problems that won’t be solved quickly.

Steelmakers now face skyrocketing costs for raw materials, energy, and labor. At the same time, they compete against a global glut of cheap steel, particularly from Chinese companies that flood markets and drive down prices. Geopolitical tensions, supply shortages, and transportation choke points only add to the chaos. The result: an industry pushed to the brink — and workers left behind.

Some steel companies are taking creative steps to survive. In December 2023, U.S. Steel announced a proposed sale to Japanese rival Nippon Steel. CEO David Burritt had warned just three months earlier that without a strong buyer, he would likely shut down the Mon Valley Works plant near Pittsburgh — an iconic facility employing more than 3,000 workers — and move company headquarters from the “Steel City” to Arkansas.

Nippon Steel emerged as the most financially viable bidder, outpacing Cleveland-Cliffs, which remains weighed down by persistent losses. Despite this, the Biden administration blocked the deal. President Trump initially opposed the sale but has since indicated a willingness to approve it.

For years, I’ve advocated better trade policies — especially deregulation and aggressive action against China. As a former commissioner on the U.S.-China Economic and Security Review Commission, I pushed to crack down on China’s intellectual property theft and ongoing geo-economic abuses. Trump’s trade agenda gives the United States its best shot in decades to protect jobs from Chinese exploitation and reopen long-shuttered paths to profitable domestic manufacturing.

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Photo by Andrew Harnik/Getty Images

On the home front, Trump’s 10-to-1 deregulation initiative — eliminating 10 old rules for every new one — could transform the business landscape. He’s already eyeing 44 regulations that manufacturers want repealed. What critics call a “tariff war” with China is really just Washington’s overdue reckoning with decades of failure to hold Beijing accountable.

These policy reforms won’t take effect overnight. And manufacturers like U.S. Steel can’t afford to wait while neglect and decay continue. Nippon Steel’s $14.9 billion bid offers a direct infusion of capital that could revive this historic company and inject new life into a battered industry.

Look at what Nippon’s latest offer — now exceeding $20 billion — includes:

• A $1.3 billion commitment to upgrade and modernize two U.S. Steel plants.
• Guarantees to retain the full U.S. Steel workforce and honor existing union contracts.
• A $5,000 bonus for every U.S. Steel employee once the deal closes.

President Trump understands business and negotiation. His priority — rightly — focuses on revitalizing American industry and creating jobs that put affordable groceries, including now-cheaper eggs, back on the tables of steelworkers.

If the choice is between watching Cleveland-Cliffs and U.S. Steel collapse or breathing new life into one through foreign direct investment, Trump won’t hesitate. He’ll choose growth — and he’ll be right to do so.