Khanna, Deluzio back tariffs and industrial investment on Pittsburgh steel tour to counter China
With U.S. steel production trailing China’s by a wide margin, two members of Congress toured Pittsburgh-area mills Thursday and argued the federal government should pair strategic tariffs with tax incentives and direct investment to bolster domestic capacity. At JM Steel in Leetsdale, Allegheny County — a joint venture that fabricates steel for the solar-power company Nextpower — Rep.
Ro Khanna asked executives what would draw more manufacturing to the region. “Investment tax credits,” one replied, urging faster processing because “it is all about deployment of cash and reinvestment.” Executives said credits from the Inflation Reduction Act enabled them to expand, but can take years to be realized.
According to the World Steel Association, China produces more than half of the world’s steel. “They’re not playing fair,” Khanna said, arguing Chinese producers benefit from heavy government subsidies and do not need to turn a profit. Rep.
Chris Deluzio said the United States “has to compete fairly,” alleging that “Communist China” subsidizes its industries and “doesn’t treat their workers with any modicum of respect.” At Tenaris’ plant in Koppel, Beaver County, which makes steel pipes for oil wells, workers highlighted process differences.
The facility uses an electric arc furnace to melt scrap into liquid steel. By contrast, they said, many newer Chinese mills rely on blast furnaces that are more harmful to the environment, and a worker contended Chinese plants face fewer environmental restrictions.
On policy, Deluzio said the United States should hold China accountable for breaking rules and enforce them through steps such as quotas or negotiated trade deals. Khanna said “strategic tariffs” are needed to protect U.S. industry from unfair competition. Asked how his approach differs from the 50% tariffs President Trump announced at a rally at U.S.
Steel’s Mon Valley Works in June 2025, Khanna said he supports existing steel tariffs but would also seek “more direct industrial investment” so plants can expand facilities and build workforces. Khanna said that money should come from an industrial investment bank funded by tax dollars and designed to invest alongside private capital.
Deluzio described the path forward as a multi-part approach combining enforcement with incentives such as tax credits to spur investment in U.S. manufacturing, adding that “one alone won’t do it.”