Steel Manufacturers Association and American Iron and Steel Institute Testify on Upcoming USMCA Negotiations

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The Steel Manufacturers Association (SMA) and the American Iron and Steel Institute (AISI) testified Tuesday before the Office of the U.S. Trade Representative, urging officials to strengthen the way the United States–Mexico–Canada Agreement (USMCA) is enforced amid rising imports of non-North-American steel into the region.

In his testimony, AISI’s President Kevin Dempsey said that steel imports entering Mexico and Canada from outside the continent are affecting U.S. producers’ ability to compete. “These increases in third-country steel imports threaten to undermine the intent of USMCA to promote production and sourcing in North America,” the institute testified. It added that the trend has “eroded the market-opening benefits” originally expected from the agreement.

AISI called for a series of policy changes, including establishing a unified external tariff on steel for the U.S., Mexico, and Canada; adopting a strict “melted and poured” rule of origin for steel used in USMCA-eligible products; and closing loopholes in duty-drawback, temporary importation, and other customs programs. The institute argued that these steps would ensure steel counted as North American is “genuinely produced within the region.”

The testimony also emphasized the need for increased transparency and enforcement. AISI urged the three governments to require more detailed data on steel imports, including melt-and-pour information, and to coordinate more closely on customs verification. “Enhanced data collection and enforcement cooperation will help detect and prevent circumvention,” the institute said.

SMA’s Vice President of Government Affairs, Brandon Farris, echoed similar concerns in its own comments, warning that global overcapacity and state-supported foreign steel continue to pressure the North American market. The group said stronger USMCA rules would help maintain a “level playing field” for regional producers.

The hearing is part of the lead-up to USMCA’s first joint review in 2026. Trade officials are collecting public input before determining whether changes to the agreement or its enforcement mechanisms will be pursued.

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