Despite 60 years of tariffs, quotas, and other trade restrictions designed to protect the U.S. steel industry, American steelmakers continue to struggle while consumers pay a steep price, according to a new paper authored by Clark Packard, research fellow, and Alfredo Carrillo Obregon, research associate at the Stiefel Center for Trade Policy Studies.

The report, “Steeled for Protectionism,” comes as policymakers debate new steel trade measures and finds that steel prices in the United States are persistently higher than in Western Europe and world market prices.

Key Findings:

  • Protectionism hasn’t worked: Despite aggressive tariffs since 2018, U.S. steel production increased only 1.4% between 2015–2024, while employment continued its long-term decline
  • Allied nations bear the brunt: 80% of U.S. steel imports come from allies like Canada, Mexico, and South Korea—not adversaries like China (less than 2%)
  • Downstream damage: Previous steel tariffs cost American manufacturers an estimated 200,000 jobs and reduced exports by $10–50 billion annually for years after their implementation
  • Technology, not imports, drove change: Mini mills and productivity improvements—not foreign competition—were the primary drivers for the elimination of 75% of steel jobs between 1962–2005

“The steel industry has received every conceivable form of protection, yet it remains one of the least competitive sectors of the American economy,” said Packard. “Meanwhile, the millions of Americans working in steel-consuming industries pay the price through higher costs and lost jobs.”

To speak with Packard or Obregon about this topic, please reach out to Cato PR at pr@​cato.​org

Full report available here.