Metals form the backbone of America’s defense industrial base
Washington, DC – Ahead of the U.S.-China bilateral meeting later this month, Joe Quinn, Executive Director of SAFE’s Center for Strategic Industrial Materials testified before the United States Trade Representative Section 301 hearing on structural excess capacity and production in key manufacturing sectors—arguing in favor of federal policy interventions to support domestic metals production.
“Fueled by state-directed investment, Chinese producers refine more copper, produce more steel, and smelt more aluminum than any other country by far,” said Quinn. “These major metals serve as the backbone of the U.S. defense industrial base and require significant federal policy intervention beyond existing tariff actions.”
Rebuilding the U.S. metals sector is a multi-year endeavor that requires sustained bipartisan cooperation. As articulated in Quinn’s full testimony, SAFE recommends four actions to strengthen domestic production against structural excess capacity.
- USTR should prioritize investigating China over other economies and partner with like-minded market economies to address China’s strategic efforts to undermine domestic producers.
- Tariff actions should avoid instances of tariff inversion and foreign trade surpluses that underutilize domestic manufacturing capacity.
- USTR should strengthen and modernize rules of origin to support meeting domestic metals and material demand through U.S. and allied supply.
- Meaningful non-tariff action should be seriously explored to catalyze new domestic investments, including production tax credits, investment tax credits, energy policy changes, and other financial tools.
An investigation under Section 301(b) of the Trade Act examines whether the acts, policies, or practices of a foreign country are unreasonable or discriminatory and burden or restrict U.S. commerce. After considering the advice of the inter-agency Section 301 Committee, and consulting with appropriate advisory committees, the United States Trade Representative has initiated these investigations. The USTR is holding public hearings starting on May 5 and continuing through May 8, 2026, regarding the investigations into 16 economies acts, policies, and practices relating to structural excess capacity and production in manufacturing sectors.
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About SAFE
SAFE is an action-oriented, nonpartisan organization committed to transportation, energy, and supply chain policies that advance the economic and national security of the United States, its partners, and allies. Since 2004, SAFE has worked with its Energy Security Leadership Council—a peerless coalition of current and former Fortune 500 CEOs and retired 4-star admirals and generals—to support secure, resilient, and sustainable energy solutions. Learn more at SecureEnergy.org.
