Zekelman Industries Sues Mexico Over Steel Trade Violations

Zekelman Industries, a leading North American steel pipe and tube manufacturer, has filed a federal lawsuit against Mexico for breaching trade agreements and dumping steel in the U.S. market. The action, lodged with the U.S. District Court, claims this practice threatens U.S. national security and has forced factory closures and job losses. This legal move coincides with petitions to enforce trade laws filed with the U.S. Office of Homeland Security and the Commonwealth Court of Pennsylvania.

The lawsuit comes amid surging Mexican steel imports, allegedly subsidized by the Mexican government, outpacing agreed benchmarks. This has resulted in competitive disadvantages for U.S. producers, risking further plant closures and potential economic fallout. Legislative efforts, led by Senators Cotton and Brown, aim to reinstate a 25% steel tariff, urging policy adjustments to curb this trend.

Despite a "melt-and-pour" tariff measure enacted by the Biden Administration, Zekelman suggests it fails to curb import surges. The company highlights Mexico's import ties with China and India, alleging a circumvention of duties on these nations' steel. Zekelman underscores the critical role of domestic steel in industries like defense and infrastructure.