About Clifford Smith
Clifford Smith, Executive Vice President and Chief Operating Officer at Cleveland-Cliffs, has been represented in public statements by the company's CEO, Lourenco Goncalves. In September 2021, Goncalves stated that the infrastructure bill was needed and that Cleveland-Cliffs would play a significant role as a producer of plate and flat rolled steel. He said the company was prepared to support infrastructure initiatives and could continue to grow its U.S. business in an environmentally friendly manner. Goncalves described the United States as the most environmentally compliant steel-producing country and argued that more steel should be produced domestically and less in China, which he said was responsible for a disproportionate share of global pollution.
In June 2018, Goncalves discussed steel tariffs, stating they were needed to level the playing field against China, which he accused of creating an unfair trade environment through low wages, pollution, and subsidies. He said the U.S. had been producing less steel than it consumed for an extended period, unlike other developed nations. Goncalves acknowledged that tariffs could have collateral effects but argued the U.S. needed to produce its own steel to meet domestic demand. He also addressed Canadian steel production, stating that if steel was not produced in Canada, Cleveland-Cliffs would supply pellets to U.S. mills.
Source: AI-verified profile updated from Clifford Smith's recent appearances.
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Transcript (12 segments)
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Lauren0:00
Lauren said take me through this because I haven't really thought about this. We have some sense this is gonna help domestic steel manufacturers. What does it do to iron ore producers? Are you up because, in fact, you know, more steel produced in the United States because of these tariffs. Now, of course, more steel produced in the United States is being positive for Cleveland-Cliffs. This being said, we were up before the impact of all these things. We rely on a very robust demand, and the economy is doing well despite tariffs, despite all this trade conversation that is doing very well. That's good news. I don't want to argue with good news. At the same time, then why did we need these tariffs? Why do we need a new practice to protect an industry that's grown already?
C
Clifford Smith0:42
We don't need to protect. We need to level the playing field. China has been the perpetrator of a lot of different actions in terms of making trade not a level playing field throughout the entire world, particularly here in the United States. There we have been their playground for a long, long time.
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Lauren1:03
Time to finish this, Lorenzo. Now that the tariffs have finally been put into place, we've already seen some early impacts. But earlier this week, markets were way down and steel makers were taking a hit. Everything was taking a hit because of concerns that trade wars could occur and lead to a recession. How are you thinking of this? I mean, do you think people are maybe blowing this up a bit more?
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Clifford Smith1:25
I think that there's a lot of worry, overreaction one way and another. Why? Because at the end of the day, the trade war has been going on for a long, long time. We are now acknowledging the trade war. We have been producing fewer tons than the demand of the domestic market for a long, long time. You know how many countries in the developed world produce less tons of steel than they use? Only one: the United States of America.
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Lauren1:54
But what about people who hear that? But they're still worried about the knock-on effects, something outside of the steel world. If you're talking IP or anything else, I mean, what do you have to say to that reaction?
C
Clifford Smith2:03
There is no remedy without collateral effects. We are now prepared to deal with the collateral effect. On the other hand, the United States is a manufacturing country, will continue to be a manufacturing country, and by being a manufacturing country, we will have to produce its own steel to the amount and quality of the demand of the domestic market. That's how things exist in Japan, in South Korea, in Germany, in Italy, in the UK. Should happen here as well.
L
Lauren2:37
A lot of people, viewers, might understand already how impacts are on US steel makers, but you being the single iron ore producer, how have you already seen impacts for Cleveland-Cliffs since the tariffs were implemented in March and then, of course, against trade allies in June?
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Clifford Smith2:51
Well, the tariffs were not implemented against trade allies. The tariffs were implemented to protect the domestic market and to bring back the unfair cost advantage that these outsiders have when they sell in the United States. And the unfair advantage is actually threefold: one, the low salaries paid to the workers; second, the worst of all, the pollution that they are creating to produce, that's more or less the same level of pollution that we used to have here in the United States 60, 70, 80 years ago. They produce with the same standards that we were using in this country before World War II. And the third one, to make things a lot worse, are the subsidies. So it's pollution, low salaries, and subsidies.
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Lauren3:49
Turning to the tariffs that were announced yesterday from Canada, how much do you sell into Canada?
C
Clifford Smith3:54
We sold a lot of, far more into Canada, a lot of pellets. They are steel makers in the Great Lakes on the other side of the border. They buy from Cleveland-Cliffs.
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Lauren4:04
So are you gonna see an impact from that?
C
Clifford Smith4:10
I don't know. I'm not, because if this is not produced in Canada, we produce at this side of the Great Lakes. You're saying Americans do? You produce more? Who will sell the pellets to the Americans? To mills? So I'm completely transparent about that, completely neutral. And I feel like we need to have the same type of rules. Otherwise, they will use Canada as a transshipment playground, and we will still be hurt through Canada.
