Iran Conflict Raises Stakes for U.S. Steel and Aluminum Supply

As Iran and Israel continue to exchange fire, threatening President Trump’s ceasefire and peace plan, vulnerability to geopolitical tensions in key commodity markets has never been more clear. Aside from oil, domestic supply of commodities essential for our national security, such as steel and aluminum, has been put at risk, making self-reliance more necessary than ever.

During his first term, President Trump imposed Section 232 national security tariffs on imports of aluminum and steel. However, these critical tariffs were eroded by Joe Biden and Kamala Harris, who granted reckless tariff exemptions to foreign countries like Canada, Mexico and Australia, whose socialist governments don’t share American values.

The problem doesn’t just lie with our leftist neighbors to the North subsidizing their manufacturing industry to try and sink ours. Foreign adversaries like Communist China also figured out how to game the Biden autopen system using our neighbors to the South. For too long, foreign regimes have exploited this vulnerability by dumping subsidized aluminum into the U.S. from Mexico without paying duties.

Fortunately, upon his historic re-election, President Trump took decisive action again by imposing a Section 232 tariff on aluminum, raising the rate to 50%. Now, for the first time in years, there is a tangible path towards rebuilding domestic aluminum supply that will make America safer and stronger.

Rigorous reinvestment is finally returning to America, as Century Aluminum and Emirates Global Aluminum are constructing the first new aluminum smelter in over 50 years in Oklahoma, creating over 5,000 new American jobs and more than doubling our production capacity. In South Carolina, Century Aluminum is investing $65 million to restart idled capacity, which is creating hundreds of good-paying jobs and increasing U.S. aluminum production by 10%. In Alabama, a $5 billion brand new Novelis aluminum rolling mill is being constructed, which will bring 1,000 new American jobs to the community.

President Trump’s national security tariffs are working. However, foreign importers are working overtime to cheat the system. Mexico is pushing for an extreme reduction in the tariff rate or country-specific exemption, which will kill off tens of thousands of U.S. steel and aluminum across America’s heartland.

If Mexico and Canada get a tariff reduction or exemption, we will repeat the same mistakes of the past. Billions of dollars and American manufacturing jobs will flood out of America, directly to foreign producers. Aside from being an economic issue, this also represents a clear and present danger to U.S. national security. These new investments in our national security will be endangered before they have the chance to get up and running. We cannot rely on foreign metals from countries that chant “Death to America” to manufacture our weapons systems and military equipment.

A nation that cannot produce its own critical metals and minerals is a nation that has accepted unnecessary risk. Aluminum may not dominate headlines in the way energy does, but in a crisis, its absence would be felt just as quickly. Supply chains that look efficient in peacetime can and will break under pressure.

Under President Trump’s leadership, the United States has finally begun treating industrial capacity as a matter of national security. As United States-Mexico-Canada Agreement (USMCA) negotiations approach, it is critical to maintain the 50% tariffs on steel and aluminum without exemptions for nations where we have lopsided trade imbalances and governments who are basing their policies on emotion rather than common business sense. Maintaining President Trump’s strong national security tariffs, without foreign handouts, is how we fortify the homeland and truly make America great for years to come.

Mike Garcia is a former combat naval aviator, a businessman and a former member of the U.S. Congress, having served on Appropriations and the House Permanent Select Committee on Intelligence. He is currently the CEO of Corner Speed, a national security advisory firm.

image: High-strength aluminum turbine engine components created using a special aluminum alloy that Dr. Rajiv Mishra developed with DEVCOM ARL researchers. (Courtesy: Rajiv Mishra)