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Trump Said Companies Must Use U.S. Steel For Pipeline

President Trump | Photo Credit Early Returns

If any energy companies are planning to construct future projects, such as the Dakota Access pipeline or Keystone XL, Trump said that these companies must use American steel to do so.

President Trump told United States Steel CEO Mario Longhi, “You’re going to be doing pipelines now, you know that, right?” during a meeting at the White House. The president believes every company should use America’s raw materials.

This would be mandatory as many formerly used steel from other countries.

Buying American Steel For Projects

American Steel | Photo Credit Metropolis Magazine

The President revealed, “We put you heavy into the pipeline business because we approved, as you know, the Keystone pipeline and Dakota, but they have to buy, meaning steel, so I’ll say U.S. steel, but steel made in this country and pipelines made in this country.”

In January, the newly elected president overturned President Obama’s decisions about Keystone XL and the Dakota Access pipelines. That decision will come with a price for businesses but will help America.

TransCanada is currently the company building Keystone.

TransCanada Set To Build In America

American Pipeline | Photo Credit Penn Medicine

Back in 2012, the Canadian company TransCanada said that about 50 percent of their pipes would be coming from Arkansas, but the other half of the materials would be coming from Canada, Italy, and India.

Some free market activists feel like the pipelines are private investments that shouldn’t be altered by the government. There hasn’t been a U.S. president to ever require private companies to use U.S. made materials. 

In some ways, it’s a “barrier to trade,” but encouraging for American companies to use American goods means more American jobs. For major companies to conduct major plans, they’re going to need to work with this new administration to improve America.

What do you think about Trump’s plan to mandate American steel use?

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