Griggs Steel Supports New Statement From the United States Cutting Tool Institute
Griggs Steel supports recent comments made by the United States Cutting Tool Institute regarding a notice issued by the Office of the United States Trade Representative (USTC) calling for a plurilateral agreement on trade in critical minerals and policy actions.
The purpose of this trade agreement is to strengthen the United States’ cutting tool industry, reduce supply chain issues, and end unfair trade practices that impact the nation’s security.
The Impact of Unfair Trade in the Tooling Industry
There are over 1,800 cutting tool manufacturers in the United States, and unfair trade, illegal foreign subsidies, and mercantilist policies threaten their survival. The materials needed to power heavy equipment, medical devices, and other critical applications are either too expensive due to tariffs or unavailable, and the industry simply cannot compete with foreign suppliers that don’t face tariffs and benefit from protected markets, tariff and non-tariff barriers, massive government subsidies, and other unfair practices.
In just five years, 18 domestic suppliers have been forced to close, which has had a significant impact on the country’s defense and aerospace industries.
Why Change Is Needed
Domestic suppliers are unable to procure the materials needed to support the production of high-performance cutting tools and broader applications, including oil and gas drilling components, aerospace turbine engines, medical shielding, and defense armaments.
The U.S. relies on imports. A U.S. Geological Survey report states that tungsten has not been mined commercially in the United States since 2015. China currently dominates the market, and its restrictive trade measures create vulnerability for downstream U.S. manufacturers.
Additionally, domestic tooling steel mills have drastically declined since 1975. In 1975, 12 steel manufacturers operated throughout the United States and Canada, but today only three mills remain and produce only a limited subset of the materials manufacturers need, forcing manufacturers to turn to offshore suppliers. Current industry data shows that the tariffs on high-speed steel imports have resulted in approximately $40.8 million in additional costs. This is unacceptable.
What a Plurilateral Agreement Would Mean
A plurilateral agreement, developed by the United States and signed among trusted allies, including South Korea, Japan, Germany, Austria, Canada, and Australia, would:
- Improve supply chain stability
- Increase material availability
- Reduce pricing pressures
- Expand the U.S. cutting tool industry
Griggs Steel Supports the United States
As a domestic high-speed steel supplier, Griggs Steel supports any decision aimed at strengthening the U.S. tooling market, reducing pricing, and ensuring supply chain reliability. We hope that the USTR moves forward with USCTI’s suggested framework so that we can continue delivering high-quality materials and reliable stocking programs.