Congressional Steel Caucus Sends Letter in Support of U.S. Automotive Manufacturing

Washington, DC - Earlier this week, Congressional Steel Caucus Chairman Rick Crawford (AR-01) and Vice Chairman Frank J. Mrvan (IN-01) sent a letter in light of President Trump's meeting with Chinese President Xi Jinping in support of U.S. automotive manufacturing.

Specifically, the letter is addressed to Administration officials and urges the rejection of any proposal that lowers barriers to access for Chinese automakers into American markets or would allow Chinese automakers to enter the U.S. market through joint ventures, partnerships, licensing arrangements, or other collaborative structures with U.S. or third country firms. The letter also states that maintaining the health of U.S. automotive manufacturing is vital to the success of the domestic steel industry, and that clear action should be taken to address the threat China poses to our domestic industry.

Chairman Crawford stated, "Allowing Chinese automakers to flood our markets with government subsidized cars or set up manufacturing on our soil would not only be a disservice to the American workforce but also poses a major national security threat. We cannot afford to stand idly by and let our adversaries undermine the steel and manufacturing industries that employ thousands of Americans. Our dealing with the Chinese communists and every nation must prioritize our industries and reflect an America First mindset."

Vice Chairman Mrvan stated, "Thank you to Chairman Crawford for your leadership to highlight this critical issue for American manufacturing and good-paying jobs in light of the important trade discussions in China. We must continue to do all we can to promote the American steel and automotive industries and ensure that all American workers can compete on a level playing field."

Kevin Dempsey, President and CEO of the American Iron and Steel Institute, stated, "AISI applauds the leadership of Congressional Steel Caucus Chairman Rick Crawford (AR-01) and Vice Chairman Frank J. Mrvan (IN-01) for their letter to the Trump administration about the clear threat China poses to our domestic auto industry. Chinese government subsidies fuel massive overproduction, which is dumped on global markets, devastating manufacturers who cannot withstand this surge of subsidized goods. Allowing Chinese automakers access to U.S. markets through any structure would undermine the very manufacturing base the administration has pledged to protect. Chinese connected automobiles are an economic and national security threat, and they should be kept out of the country."

Roxanne Brown, International President of the United Steelworkers, stated, "American workers can compete with anyone in the world, but they shouldn't have to compete against the Chinese Communist Party's subsidies, overcapacity, and market manipulation. Our economic and national security depend on strong domestic manufacturing, resilient supply chains, and the workers who keep them running. The United Steelworkers thanks Rep. Mrvan and other congressional leaders who are pushing for strong trade enforcement to defend American jobs and industries."

Scott Paul, President of the Alliance for American Manufacturing, said, "Allowing Chinese automakers to gain access to the U.S. market directly or through joint ventures would hollow out America's supply chains and undermine our ability to produce steel and other critical materials here at home. The Congressional Steel Caucus is right to draw this line, and the administration should use every available authority to protect domestic manufacturing and our national security."

The text of the letter is below and a pdf is available here.

"Dear Secretary Bessent, Ambassador Greer, Secretary Lutnick, and Secretary Rubio,

"We write as leaders of the Congressional Steel Caucus to highlight the national security and economic imperative of protecting U.S. automotive manufacturing, which sustains millions of good-paying American jobs across the domestic supply chain. As President Trump engages in ongoing negotiations with President Xi Jinping, we urge you to reject any proposal that lowers barriers to access for Chinese automakers into American markets or would allow Chinese automakers to enter the U.S. market through joint ventures, partnerships, licensing arrangements, or other collaborative structures with U.S. or third country firms.

"China's nonmarket industrial policy poses a sustained threat to the American steel and automotive sectors, where the Chinese Communist Party (CCP) provides state-backed support for below-market products that drive global overcapacity. Chinese steelmakers currently account for over half of global steel production and receive 15 times the level of subsidies than do their competitors in market-based economies. Similar unfair trade practices have driven a rapid expansion of Chinese autos that have reshaped global markets over the last several years. Last month, it was reported that Chinese exports of passenger vehicles were 85 percent higher than the year prior. This meteoric growth has allowed Chinese autos to take significant market share across the global south and other emerging markets. And now Chinese automakers have increasingly focused their sales efforts on the North American market. Allowing Chinese automakers increased access to sale and operations on U.S. soil would make it impossible for American producers to compete on a level playing field.

"Additionally, China has a history of skirting existing U.S. trade laws by establishing operations in other markets through its Belt and Road Initiative. The result for American steel producers has been detrimental, leaving significant loopholes for the dumping of Chinese products that flood the market. This is especially concerning given the recent actions from North American partners to ease barriers to entry for Chinese automakers.

"Maintaining the health of U.S. automotive manufacturing is vital to the success of the domestic steel industry. Across all domestically produced steel products, the automotive sector represents more than 20 percent of demand, and steel comprises about 54 percent of an average vehicle by weight. This sector supports millions of good-paying, family-supporting American jobs across a vast network of critical supply chains from research and development facilities to steel mills to assembly lines. Protecting these industries from unfair Chinese intervention is vital to our workforce and to U.S. economic and national security.

"We appreciate the Administration's efforts to reshore American manufacturing and protect the domestic steel industry, and we ask that you take clear action to address the threat China poses to our domestic auto industry.

"Thank you for your attention to this important matter."

Sincerely,

Rep. Rick Crawford (AR-01)

Chairman

Rep. Frank J. Mrvan (IN-01)

Vice Chairman

The Congressional Steel Caucus is a bipartisan group of over 100 Members of Congress dedicated to supporting the health and strength of the American steel industry and its workforce.

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