The Biggest Fan of Trump’s Steel Tariffs Is Suing Over Them

John Hritz, president and chief executive officer of JSW Steel USA Inc., put on a big smile and a Texas flag pin for his television spot on Fox Business in March 2018. “It’s a special day,” he told his host, then told her again: “It’s a special day.” JSW Steel’s India-based parent company, JSW Group, had announced it would invest $500 million and create 500 jobs at its steel mill in Baytown, Texas. “We’re going to make history,” Hritz said. Hritz was counting on help from President Trump, who three weeks earlier had announced his intention to impose tariffs of 25% on steel and 10% on aluminum imported to the U.S. The Fox anchor wondered if the import levies might interfere with JSW’s Baytown plan, given that much of the raw steel processed at the mill was imported from India and Mexico. “Absolutely not,” Hritz said. On the tariffs, JSW was “in lockstep with the president and with the administration.” Not so much anymore. A big piece of the Baytown project has been postponed indefinitely, in part because of Trump’s tariffs. Both Baytown and a sister plant in Ohio, where JSW once planned to invest another $500 million, have been operating at unprofitably low production levels, also owing in part to the tariffs. JSW has sued the administration for refusing to exempt it from paying the levies on the massive slabs of steel the company imports and turns into pipe and other products for industrial use. “It’s the hypocritical nature of these tariffs that’s completely dumbfounding us,” says Parth Jindal, director of JSW Steel USA and managing director of JSW Cement Ltd. in India. “It just doesn’t add up.” As Hritz sees it, JSW set out two years ago to do precisely what Trump and his trade hawks said the tariffs would help accomplish: reestablish the U.S. as a premier producer of steel. Hritz told the online trade publication Fastmarkets AMM after the tariffs were put in place, “We are following right down the road where the administration wants things to go … to completely overhaul the steel industry in this country.” But the revolution has been delayed by a bureaucratic morass at the U.S. Department of Commerce and, possibly, political weight thrown around by two of steel’s heaviest heavies: United States Steel Corp. and Nucor Corp...MORE