Tube China News: Pennsylvania Court Ruling Limits Use of Mexican Steel Pipes in State Public Projects

According to reports obtained by Tube China, a ruling made by the federal court in Pennsylvania in November stipulates that public construction projects in the state may not use steel pipes manufactured in Mexico. The ruling originated from a lawsuit filed on behalf of pipeline giant Zekelman Industries against the Republic of Mexico.

Zekelman President Mitch McNamara stated that many pipeline products enter the United States under different product classifications, thereby circumventing the tariff and quota restrictions under the United States-Mexico-Canada Agreement (USMCA). Tube China learned that the company chose to pursue cases that had already had an impact. Zekelman operates plants producing steel pipes in places such as Rochelle, Illinois, and Whitland, Pennsylvania, with pipeline products accounting for nearly 40% of the total output at the Whitland facility.

CEO Barry Zekelman provided specific data, noting that the United States imports approximately 8,000 to 9,000 tons of pipes per month, primarily from Mexico.

McNamara further analyzed that distributors generally are unwilling to carry both domestic and imported products at the same time. Therefore, if the ruling is enforced, distributors are likely to favor sourcing U.S.-made materials.

Zekelman believes that beyond direct market share, the message behind the ruling is even more important. Trade barriers influence people's mindset, making them less willing to use imported goods, whether due to concerns about standards or a preference for supporting domestic products. Once this mindset is established, it can become a more effective barrier than tariffs.

At present, Zekelman has not initiated similar lawsuits in other states. McNamara explained that filing a lawsuit requires certain conditions: the state must have laws supporting such litigation, and the plaintiff company must be a “corporate citizen” of that state. He revealed that the case was filed during the previous federal administration, when there was a lack of federal-level policy support. The company prefers to cooperate with governments that align with its stance.

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