MethodologyContact usSupportLogin
Two western Pennsylvania congressmen have introduced a bill aimed at strengthening trade enforcement against offshore steel producers that evade anti-dumping and countervailing duty orders.
But the proposed legislation — whose press release centers heavily on providing relief for domestic pipe producers — fails to address the issue that’s causing them the most harm, according to critics.
The Strengthening Trade Enforcement and Evasion Limitations (STEEL) Act is a joint effort by Representative Mike Kelly (R-PA), who represents Pennsylvania’s 16th Congressional District and faces re-election in 2026, and Representative Chris Deluzio (D-PA), who represents Pennsylvania’s 17th District and was elected to his second term in November. Both districts have high concentrations of steelworkers and fabrication companies.
If enacted, the STEEL Act would empower US Customs and Border Protection (CBP) to initiate its own investigations when evidence of anti-dumping and countervailing duty circumvention is identified.
Roger Schagrin, executive director and general counsel for the Committee on Pipe and Tube Imports (CPTI), was quoted in the December 8 press release announcing the bill, saying steel and pipe producers across the country have “long borne the brunt of unfairly traded imports.” Schagrin added that gaps in the Enforce and Protect Act (EAPA) — the trade law that allows CBP to investigate circumvention only after a domestic producer or stakeholder files a complaint — have “allowed some importers to exploit loopholes” and avoid duties.
Although anti-dumping and countervailing duties were once the primary protection for the domestic steel industry against offshore producers selling into the US below production cost — and sharply undercutting domestic prices — the June revision of the Section 232 steel tariff to 50% has significantly curbed steel import tonnages.
Census data from the US Department of Commerce’s International Trade Administration shows that US imported 2,175,911 tonnes of steel from offshore producers in October 2024. That figure fell to 1,443,895 tonnes during the same period this year — a decline of 33.64%.
Fastmarkets asked the bill’s co-authors whether additional remedies are needed to prevent offshore producers from dumping steel into the US at unfair prices, given the higher Section 232 steel import tariff rate, and whether anti-dumping and countervailing duty circumvention remains a concern for companies in their districts.
A representative from Kelly’s office referred Fastmarkets back to his statement in the press release.
“For years, foreign steel producers have undercut American steel and tube producers by exporting their product at prices below the cost of production. These harmful — and even illegal — trade practices have hurt Pennsylvania steel producers, leading to job losses in communities across Pennsylvania and the United States,” Kelly said. “The [STEEL] Act puts American companies first, and it fully rejects the idea that foreign companies can participate in the US market against US companies without playing by the same rules.”
Deluzio’s office could not be reached for comment. Fastmarkets also contacted the CPTI to ask why additional legislation is needed to protect the domestic steel industry, given the increased Section 232 tariff rate. A response from that office was not received by the time of publication.
One pipe fabricator operating in Pennsylvania’s 16th Congressional District told Fastmarkets their company is not being negatively affected by steel imports. A second fabricator in that district echoed that sentiment, adding they have never been impacted by foreign steel.
A distributor in the region, a long-time supporter of trade protections for the steel industry, was skeptical that further legislation is necessary.
“On the surface, the first thing that comes to my mind is why do we need something else if we have [Section] 232?” they said. But the source noted that, given the Trump administration’s recent willingness to use Section 232 tariffs as a negotiating tool in trade discussions, “something like this could be a good safety net if we need one to fall back on.”
For example, in late November, US Commerce Secretary Howard Lutnick told a major news outlet that if the EU lessened regulations against US tech companies, the US would, in exchange, lower tariffs on steel and aluminium. That offer was ultimately declined. During the same month, the US agreed to reduce South Korea’s Section 232 tariff rates on automobiles, auto parts and pharmaceuticals after the country committed to investing $350 billion in various US industries.
The distributor added that, outside providing that possible safety net, the proposed legislation “feels more like political posturing by someone who is up for re-election next year and wants something to talk about on the campaign trail.”
Fastmarkets also reached out to Wheatland Tube, a subsidiary of Zekelman Industries operating in the 16th Congressional District. Wheatland manufactures a range of steel pipe and tube products, including electrical conduit, solar and mechanical tubing, among others.
Chief executive officer Barry Zekelman told Fastmarkets that one of the greatest issues facing domestic pipe producers stems from a February decision by the Trump administration that changed how Section 232 duties are calculated for pipe and tube imports. Zekelman said the shift effectively moved pipe and tube into a system that allows importers to declare the steel content of a product — essentially treating pipe and tube as derivative — rather than its full value, enabling importers to significantly reduce their tariff exposure.
When offshore producers ship steel into the US, he explained, pipe importers not only get to unilaterally declare the value of the product — which he described as “scout’s honor” — they now also get to declare what percentage of the product is made from steel.
Even though 99.99% of steel pipe products are made of steel, he added, importers can now claim otherwise.
“Before they could say the value of this steel is $600 [per short ton], so the duty is $300 [per ton].” he said. “But as of February, when pipe and tube comes in from [South] Korea, if they say the [total] value [of the product] is $900, but the steel value is only $400, the duty is only 50% of the steel value — so $200 [per ton].”
Zekelman also said this is why pipe and tube import volumes have remained resilient when compared with other products, such as hot rolled coil.
Data from the Commerce Department backs that claim.
According to government data, in October 2024, the US imported 294,987 tonnes of carbon and alloy pipe from global producers. One year later, the US imported 268,090 tonnes — a decline of just 9.11%.
In contrast, hot rolled coil imports to the US in October 2024 were recorded at 178,817 tonnes, against 94,474 tonnes during the same reporting period in 2025, reflecting a drop of 47.18%
Zekelman is advocating for pipe imports to be tariffed based on weight, at a fixed amount per tonne.
“This would equate [to a true 50% tariff] so [the importer] can’t lie about the value. We’re getting cheated because they’re lying on the importation value,” he said.
When asked if he felt that additional anti-dumping and countervailing duty investigation protections are needed on top of existing Section 232 tariffs, Zekelman said he believes the steel industry needs to “have every arrow in our quiver ready to go.”
“Why wouldn’t you give the CBP that tool, ready to use, if we prove there is cheating going on?” he said. “Who does that hurt? If someone is cheating America, why would anyone be against that?”
Want to know more about policy changes in the steel industry? Access Fastmarkets’ steel price data, market analysis and forecasting. Speak to one of our experts to find out more.