Lourenco Goncalves, the president and CEO of Cleveland-Cliffs, addressed members at a recent American Iron and Steel Institute meeting, highlighting the importance of robust tariffs on steel and aluminum. His comments arrive amid a heated debate about our country’s trade partnerships. These discussions are highly relevant for the economic policies that are currently affecting the United States steel industry.
During his speech, Goncalves emphasized that the U.S. has grown overly comfortable with its trade dynamics, particularly with its close allies. He argued, among other things, against the idea that any political figure would start economic wars with allied countries.
Nobody could have predicted that a little known businessman named President Trump would eventually hurl the United States into an economic battle with its best friend and ally. It’s difficult to imagine he’d set himself against the entire planet as well. So we thought,” said Goncalves, highlighting the surprising nature of today’s trade war.
That doesn’t stop Goncalves from enthusiastically backing President Trump’s existing tariffs. He argues that these tariffs are key to bolstering the American steel industry. He applauded the U.S. Department of Commerce’s recent decision to expand the scope of these tariffs, which he believes will safeguard jobs and ensure the industry’s competitiveness.
“This bold action strengthens the American steel industry and safeguards the livelihoods of our nation’s steelworkers,” he remarked, illustrating his commitment to supporting domestic production.
Additionally, Goncalves proposed an increase in tariffs on steel from 25 percent to 50 percent, reinforcing his stance on protecting American manufacturers against foreign competition. This proposal is just one example of a growing feeling across the industry that strong, trade-distorting barriers must be maintained at all costs.
The CEO’s comments hit home amidst a growing chorus of angst among business leaders and political elites over the increasingly combative posture that Trump has taken towards trade. Indeed, Ontario Premier Doug Ford has been the most aggressive provincial critic of the protectionist nature of these trade relationships to the south as well. He recently stated, “The problem is we got too comfortable with our closest friend and ally, with the United States,” suggesting a need for reevaluation in how trade is managed.
At the same time, Ford expressed disgust for business as usual, alluding to possible ownership changes at Stelco, a Canadian steel producer. “Maybe they should find a new owner for Stelco. Maybe we should just buy him. And why doesn’t he just stay in the U.S. because I’m done with this guy,” he expressed, highlighting his concerns over worker welfare and corporate responsibility.
