Dealing with Debt 5-27-25

The US has lost its last perfect credit rating, as influential ratings firm Moody's expressed concern over the government's ability to pay back its debt. In lowering the US rating from 'AAA' to 'Aa1', Moody's noted that successive US administrations had failed to reverse ballooning deficits and interest costs.

https://www.google.com/search?q=us+debt+downgrade 

In May 2025, the US national debt was $36.21 trillion. This includes $28.90 trillion in debt held by the public and $7.31 trillion in intragovernmental debt. The federal budget deficit for fiscal year 2025 is projected to be $1.9 trillion, according to the Congressional Budget Office. This deficit represents 6.2% of the Gross Domestic Product (GDP). 

https://www.google.com/search?q=us+national+debt+2025

The US government's interest payments on the national debt are projected to exceed $1 trillion in 2025 and continue rising throughout the next decade, reaching $1.8 trillion by 2035. This increase is primarily due to higher interest rates and a larger national debt. These interest costs will likely exceed defense spending and even Medicare spending. 

https://www.google.com/search?q=interest+payments+on+us+national+debt

The US Federal Government is in the process of cleaning up the Federal Budget that includes removing fraud, waste and abuse, reviewing and right-sizing headcount, upgrading computer systems to allow automation and giving it databases access to each other.

The cost of upgrading US federal computer systems is a complex issue with various facets. Here's a breakdown of the costs and related factors:

1. Overall Federal IT Spending:

The US federal government spends a significant amount on IT each year, with estimates exceeding $90 billion.

A large portion of this spending is allocated to operating and maintaining existing systems, including legacy systems.

In fiscal year 2025, the Biden administration requested $75.1 billion for IT spending across civilian agencies, a slight increase from the $74.4 billion requested in 2024.

The Department of Energy's IT budget saw a notable 37% increase, reaching $5.5 billion in FY2025, while the Department of Homeland Security's IT budget increased by 23% to around $11 billion.

Conversely, the Office of Personnel Management's IT budget decreased significantly, by 64% compared to FY2024. 

2. IT Modernization Initiatives:

The government recognizes the need to modernize its aging IT infrastructure.

The Technology Modernization Fund (TMF) is a key mechanism for funding modernization projects.

The Biden administration requested $75 million for the TMF in 2025, a reduction from the $200 million requested in 2024.

In addition to individual agency IT budgets, the administration is also requesting funds for the Federal Citizen Services Fund and OMB's IT Oversight and Reform fund. 

3. Cybersecurity Costs:

Cybersecurity is a major concern, and the federal government is increasing its cybersecurity investments.

The estimated annual civilian cybersecurity spending for CFO Act agencies was $12.325 million in FY2025.

The non-CFO Act Agencies received $674.3 million.

The Department of the Treasury's cybersecurity budget includes funding for zero trust architecture implementation and targeted artificial intelligence investments.

The Cybersecurity Enhancement Account also received a budget of $150 million for FY2025. 

4. Challenges and Considerations:

Many federal IT systems are outdated and rely on legacy technologies.

Modernization projects are complex and often face delays and cost overruns.

Balancing the need for modernization with cybersecurity concerns is a critical challenge.

There is a need to ensure that modernization efforts are efficient and cost-effective. 

5. AI and Emerging Technologies:

The government is exploring the use of AI to improve efficiency and effectiveness.

The 2025 budget request includes $300 million in mandatory funding for AI.

Agencies are using AI tools to help with maintaining and upgrading old systems. 

In conclusion: The cost of upgrading US federal computer systems is substantial and involves a complex interplay of factors. While the government recognizes the need for modernization and is investing in it, there are also challenges to overcome, such as aging infrastructure, cybersecurity concerns, and ensuring cost-effectiveness. The adoption of AI and other emerging technologies is also playing a role in shaping the future of federal IT modernization. 

A Look at the Federal Government's Aging Computer Systems

Aug 6, 2019 — Out with the old. The U.S. government plans to spend over $90 billion this fiscal year on information technology and most of that will be used to operate and ma...

U.S. Government Accountability Office (GAO) (.gov)

White House wants $75M for Technology Modernization Fund ...

Mar 11, 2024 — White House wants $75M for Technology Modernization Fund in fiscal 2025 — down from $200M in 2024 request. ... In total, the Biden administration requested $75....

FedScoop

For 2025 budget request, federal IT prioritizing AI, CX

Mar 12, 2024 — For 2024, the Senate is recommending $13.7 million and the House is allocating $8 million. Source: President's 2025 budget request.

https://www.google.com/search?q=cost+of+upgrading+us+federal+computer+systems+2025

Upgrading systems will cost money and will take time to implement. The first priority is to reduce tax rates to increase revenue and lower costs. DOGE has identified $160 billion in cost savings and will continue to identify unnecessary spending to reach their $1 trillion goal.

Tariff revenue can be used to add to Federal Revenue. Deporting Illegals will reduce costs and provide jobs for US citizens. Increasing Oil production will reduce costs. Reshoring manufacturing will add jobs. Lowering Federal Spending will allow for Private Sector GDP growth. New Trade Deals will increase US Production. Increasing oil production will reduce energy costs and reduce the US Trade Deficit. The goal is to increase family income and reduce family living costs by 2026.

The U.S. debt ceiling for 2026 is projected to be $39.8 trillion, reflecting the expected increase in debt subject to the limit as outlined in the House Budget Committee plan. The debt limit was reinstated at $36.1 trillion on January 2, 2025.

https://www.google.com/search?q=what+will+the+us+debt+ceiling+be+2026

In March 2025, the U.S. had 7.2 million job openings. 

https://www.google.com/search?q=how+many+us+job+openings

Comments

The cost of living in the US needs to be reduced. The costs in the US that need to be reduced includes Healthcare, Education, Housing and Automobiles.

Norb Leahy, Dunwoody GA Tea Party Leader

Reconciliation Bill 5-27-25

The House and Senate are dealing with tight margins in the House and Senate. The House Bill had to be a Reconciliation Bill to avoid the 60 Senate votes required to bring the Bill to the floor in the Senate. The Bill made the 2017 Tax Rates permanent to avoid raising taxes to pre 2017 levels. The Debt Ceiling needed to be raised to avoid default.  Reducing the lower Income Tax Rates further will require a separate Bill. Reducing the Corporate Tax Rates will be finalized on this Bill. 

The House Reconciliation Bill passed on May 22, 2025, included removing regulations and many other reforms.

https://www.congress.gov/bill/119th-congress/house-bill/1/text

The Senate has added enhancements. The House and Senate will agree and send the Bill to President Trump to sign into law. This law 

US Debt Ceiling Increase

The House bill passed on May 22, 2025, would raise the debt ceiling by $4 trillion. This increase would allow the government to continue paying for its existing obligations without facing a default, according to NPR. The bill also includes various other provisions, including tax cuts and changes to social programs. 

https://www.google.com/search?q=increase+in+debt+ceiling+in+the+house+bill+2025

Child Tax Credit

The House GOP bill proposes a number of changes to the child tax credit. The bill, if passed by the Senate, would: Temporarily increase the credit to a maximum of $2,500, from $2,000 currently, effective from 2025 through 2028, at which point the maximum credit would drop back to $2,000.May 15, 2025

https://www.google.com/search?q=increase+in+child+tax+credit+for+low+earning+single+moms+in+the+house+bill+2025

Earned Income Tax Credit

The 2025 House Budget Resolution, as announced by the Senate, includes an expansion of the "Earned Income Tax Credit (EITC)" for individual adults without dependents, according to the Senate. This expansion would provide greater financial relief for low-income workers, including single mothers, according to the Senate. Additionally, the resolution includes expanded Medicaid coverage and protections for vulnerable populations. 

Here's a more detailed breakdown: 

The Senate modifies the Executive proposal to increase and expand the EITC for individual adults without dependents, according to the Senate. This would provide greater financial relief to low-income workers, including single mothers who may not have children to claim the Child Tax Credit.

The resolution also includes expanded Medicaid coverage and protections for vulnerable populations, which could indirectly benefit single mothers and their children by providing access to essential healthcare services.

https://www.google.com/search?q=increase+subsidies+for+oow+earning+single+moms+in+the+house+bill+2025

Investment Depreciation

The proposed tax legislation, will restore 100% bonus depreciation for qualified property placed in service after January 19, 2025 and before January 1, 2030. This would allow businesses to deduct the full cost of eligible equipment in the year it is placed in service, rather than depreciating it over time. 

Key Details: 100% Bonus Depreciation: The bill would reinstate 100% bonus depreciation for qualified property, which generally includes equipment and machinery. 

Effective Date: The provision would apply to property acquired and placed in service after January 19, 2025, according to various sources. 

Expiration Date: The 100% bonus depreciation would be available through 2029.

Other Provisions: The bill also includes other provisions related to business taxes, such as an increase in the small business deduction and R&D expensing. 

Qualified Property: The term "qualified property" is generally defined to include most equipment and machinery. 

Benefits: 100% bonus depreciation provides businesses with an immediate tax deduction, which can boost cash flow and encourage investment. 

https://www.google.com/search?q=100%25+expensing+for+busineses+in+house+bill+2025

Comments

If Republicans can increase their numbers of House and Senate members in November 2026, we should be able to put the US economy on the path to full recovery.

This explains how Trump is balancing spending until 2028 to include system upgrades to ensure that the US leads in Defense, Technology and Productivity. The jobs will be created to restore the US Middle Class.

There are currently 7 million US jobs that need to be filled. We can expect this level of hiring will continue.

Norb Leahy, Dunwoody GA Tea Party Leader

CBO Revenue and Spending Projections 5-26-25

In 2025, the US federal government is projected to have a budget deficit of $1.9 trillion, with total outlays of $7.0 trillion and revenues of $5.2 trillion according to the Congressional Budget Office. Debt held by the public is projected to reach 100% of GDP. Economic growth is projected to moderate, with real GDP growing by 1.9% in 2025.  

Detailed Projections:

Outlays: Federal outlays are projected to reach $7.0 trillion in 2025, representing 23.3% of GDP says the Congressional Budget Office. 

Revenues: Federal revenues are projected to be $5.2 trillion, or 17.1% of GDP, in 2025 states the Congressional Budget Office. 

Debt: The debt held by the public is projected to reach 100% of GDP. 

Economic Growth: Real GDP growth is projected to be 1.9% in 2025. 

Inflation: Inflation is expected to slow in 2025 and settle at 2% or less after 2026. 

Interest Rates: Short-term interest rates are projected to remain below 10-year rates after 2025, reflecting their typical relationship. 

Deficit: The budget deficit is projected to be $1.9 trillion in 2025. 

https://www.google.com/search?q=US+Revenue+and+Spending+Projections+for+2025&

In Fiscal Year (FY) 2025, the U.S. federal government is projected to collect $5.48 trillion in revenue. This is a significant increase from the $4.92 trillion collected in FY 2024. The main sources of revenue are individual and corporate income taxes, Social Security and Medicare taxes, and other sources like excise taxes. 

Elaboration:

FY 2025 Revenue: The Congressional Budget Office (CBO) projects that the U.S. federal government will collect $5.48 trillion in revenue for FY 2025. 

Increased Revenue: This represents a substantial increase from the $4.92 trillion collected in FY 2024, as reported by the same CBO. 

Revenue Sources: The primary sources of revenue include:

Individual and corporate income taxes 

Social Security and Medicare taxes 

Excise taxes and other miscellaneous sources 

Key Revenue Components: Individual and corporate income taxes are projected to contribute a combined $1.94 trillion in FY 2025, making up 62% of total revenue, according to the U.S. Treasury. 

Individual income taxes alone account for 54% of total revenue in FY 2025. 

Social Security and Medicare taxes make up another 33%. 

https://www.google.com/search?q=US+Revenue+and+Spending+Projections+for+2025

Norb Leahy, Dunwoody GA Tea Party Leader

Congressional Budget Office Inaccuracy 5-26-25

Inaccuracies in the Congressional Budget Office (CBO) budget projections for 2025 have been noted, particularly regarding revenue and spending estimates. The CBO has admitted underestimates of increased Medicaid spending and overestimations of the deficit impact of tax relief. For example, in its May 2023 projections for fiscal year 2024, the CBO underestimated revenues by 1 percent and outlays by 6 percent. 

Here's a more detailed look at the issues: 

Revenue Projections: The CBO tends to overestimate revenues, with an average error of 1.2% for budget-year projections. This means they sometimes project higher revenues than actually occur. 

Spending Projections: The CBO also underestimates spending, particularly for Medicaid, with inaccuracies linked to enrollment assumptions. They have admitted that their underestimates of increased Medicaid spending are directly attributable to inaccurate enrollment assumptions. 

Medicaid Spending: The CBO has admitted to underestimating the increased spending on Medicaid. 

Tax Relief: The CBO has also been criticized for overstating the deficit impact of tax relief for Americans. 

Debt Projections: The CBO's long-term outlook shows that federal debt will surge past record levels, rising from 100 percent of Gross Domestic Product (GDP) in Fiscal Year (FY) 2025 to 156 percent of GDP by 2055. 

Deficit Projections: The federal budget deficit for fiscal year 2025 is projected to be $1.9 trillion by the CBO. 

Transparency Efforts: The CBO has been working to enhance transparency and accuracy in its budget projections. 

Spending Will Continue to Outpace Revenue. Revenue is projected to grow from 17.1 percent of GDP in 2025 to 18.2 percent in 2027 as the Tax Cuts and Jobs Act expires, then increase gradually to 19.3 percent of GDP in 2055. Historically, revenue has averaged 17.3 percent of GDP and spending 21.1 percent of GDP.

The Congressional Budget Office (CBO) was created in 1974 primarily to strengthen Congress's role in budget matters. Specifically, the Congressional Budget and Impoundment Control Act of 1974 aimed to reassert congressional authority over the federal budget, which had been weakening in the early 1920s. The CBO was established as part of this act to provide Congress with independent, nonpartisan information and analysis to assist in the budget process. 

https://www.google.com/search?q=why+was+the+congressional+budget+office+created+in+1974

Comments

The Congressional Budget Office was created in 1974. It did not recognize the increase in revenue under President Kennedy’s tax rate cuts in 1960.  I did not recognize the Laffer Curve, or the revenue increases after the Reagan tax rate cuts in the 1980s. It does not recognize the revenue increases after Trump’s tax rate cuts in 2017. The CBO does not include Trump’s Tariff Revenue. It does not recognize growth that occurs with reductions in the US Trade Deficit. The CBO, like the Federal Reserve, is not set up to make “accurate projections”.

The US Nominal GDP needs to be tracked to follow the Private Sector GDP v the Government GDP to total the Combined US Nominal GDP. US economic growth will come to the Private Sector. We are reshoring manufacturing to the US to increase the Private Sector GDP. Trump is pursuing “Reciprocal Trade” to reduce the US Trade Deficit from $1 trillion to $500 billion. Trump is pursuing automation and systems upgrades in Government to reduce National Debt Interest from $1 trillion to zero.

Norb Leahy, Dunwoody GA Tea Party Leader

House Reconciliation Bill 5-25-25

The House passed their “Big Beautiful Bill” as a Reconciliation Bill that maintains the Federal Budget at current levels. The House did not propose fixing US Income Tax Bracket in this bill. They kept the Tax Brackets used in the 2017 Bill and made them permanent to avoid having them expire in December 2025. 

A reconciliation bill is a legislative tool used in the United States Congress to enact legislation with a simple majority in the Senate, bypassing the need for 60 votes to overcome a filibuster. It is primarily used for bills related to budget-impactful items like taxes, spending, and the debt limit. 

Here's a more detailed explanation:

Key Features of a Reconciliation Bill:

Bypass Filibuster: Unlike regular legislation, reconciliation bills in the Senate only require a simple majority (51 votes, or 50 if the Vice President breaks a tie) for passage. This is crucial for passing controversial or partisan bills that would otherwise be blocked by the filibuster. 

Budget-Related Focus: Reconciliation is typically used for legislation that affects the federal budget, including changes to spending, revenues, or the debt limit. 

Starts with Budget Resolution: The process begins with a budget resolution passed by both the House and Senate, which sets specific targets for spending, revenue, and the debt limit. 

Instructs Committees: The budget resolution then instructs specific congressional committees to draft legislation that meets those targets. 

One Bill, Multiple Provisions: Each committee writes a bill based on its instructions, and these bills are combined into a single, omnibus reconciliation bill. 

Byrd Rule: The Byrd Rule limits what can be included in a reconciliation bill, ensuring that the provisions have a direct impact on the federal budget and comply with specific budget rules. 

Limited Debate: Debate on reconciliation bills in the Senate is limited, usually to 20 hours, further expediting the process. 

In essence, a reconciliation bill provides a streamlined and expedited process for Congress to enact legislation that impacts the federal budget, particularly when the majority in the Senate is not large enough to overcome a filibuster on a regular bill. 

https://www.google.com/search?q=reconciliation+bill+definition

Comments

The House Bill authorizes a $4 trillion increase in the Debt Ceiling. Budget Allocations will continue to be $7 trillion and Revenue is expected to be $5.5 trillion.

The strategy worked. The Senate has developed enhancements to this Bill and will send them to the House. If the House agrees, they will add the Senate amendments and the Senate will approve the Bill. The final Bill will then be sent to the President to sign into law.

I expect the House will propose reductions in Income Tax Rates for “low earners”. The lowest Bracket should be reduced from 10% to 5% of income lower than $11,925. The next lowest Bracket should be reduced from 12% to 10% for those earning $11,926 to $48,475. Tax Rates for households earning less that $60,000 should not exceed 15%.

Lower earners have gained higher benefit levels and will benefit from lower energy costs and gain access to higher paying manufacturing jobs. The Bill includes increasing the Child Tax Credit from $2000 to $2500 and Medicaid is expanded.

The Bill supports Job Creation.  Higher paying jobs for “low earners” may require some training. The US currently has 7 million job openings. Provisions in the Bill will allow businesses to offer higher pay. Part-Time and Summer employment should become more available to teens. The deportation of unvetted Illegals will make these jobs available to US citizens.

Norb Leahy, Dunwoody GA Tea Party Leader

2017 Tax Rates Permanent 5-25-25

The House bill, also known as the "One Big Beautiful Bill," proposes to make the individual income tax brackets established by the 2017 Tax Cuts and Jobs Act (TCJA) permanent.  

Here's a summary of the proposed individual income tax brackets:

For Single Filers:

Tax Rate        Taxable Income

10%                $0 to $11,925

12%                $11,926 to $48475

22%                $48,476 to $103,350

24%                $103,351 to $197,300

32%                $198,301 to $250,525

35%                $250,526 to 626,350

37%                $626,351 or more

 

Married Couples Filing Jointly

Tax Rate         Taxable Income

10%                 $0 to $23,850

12%                 $25,851 to $96,950

22%                 $96.951 to $206,700

24%                 $206,701 to $394,600

32%                 $394,601 to $501,050

35%                 $501,050 to $751,600

37%                 $751,601 or more

The tax brackets are adjusted annually for inflation, meaning the income thresholds for each bracket may shift slightly each year. 

Important Note: This information is based on the House bill as it currently stands. The bill may be subject to changes as it moves through the legislative process in the Senate. 

As of May 22, 2025, there's no indication in the House tax bill of any changes to the corporate income tax rate. 

Here's a breakdown:

Current Federal Corporate Income Tax Rate: The current federal corporate income tax rate is 21%, established by the Tax Cuts and Jobs Act (TCJA) of 2017. This rate is a flat rate, meaning it applies to all corporate taxable income, and it's permanent.

 

No Change in House Bill: The House tax bill, sometimes referred to as the "One Big Beautiful Bill", does not propose any changes to this existing corporate tax rate. 

In summary: While there might be ongoing discussions about potential tax changes, the current House bill doesn't include any provisions to alter the existing 21% federal corporate income tax rate. 

https://www.google.com/search?q=what+are+is+the+corporate+income+tax+%25+in+the+house+bill

While a 15% corporate tax rate was discussed during the campaign trail, it is not included in the House bill (often referred to as the "One Big Beautiful Bill") that was recently passed. 

Here's a breakdown:

Current Corporate Tax Rate: The bill leaves the corporate tax rate unchanged at 21%.

Campaign Promises: President Trump had frequently mentioned lowering the corporate tax rate to 15% for US manufacturers, but this proposal was not incorporated into the final bill.

Focus of the Bill: The bill primarily focuses on extending or making permanent many of the tax cuts enacted in the 2017 Tax Cuts and Jobs Act (TCJA). It also includes provisions related to spending cuts and policy changes in various areas like energy and social programs. 

In summary, the recently passed House bill does not include a reduction of the corporate tax rate to 15%. The rate remains at 21%. 

https://www.google.com/search?q=15%25+corporate+tax+in+the+house+bill+2025

No Tax on Tips

The "No Tax on Tips Act," passed by the Senate and currently under consideration in the House, proposes a tax deduction for tips received by eligible employees. This deduction would allow employees to exclude up to $25,000 in cash tips per year from their federal income tax, according to The Washington Post. The bill also includes provisions for deductions on overtime pay, potentially benefiting workers in various industries. 

Key Features of the Proposal:

No Tax on Tips: The proposal would allow eligible employees to deduct cash tips from their federal income tax, with a limit of $25,000 per year. 

No Tax on Overtime

No Tax on Overtime: The bill includes provisions for deducting overtime pay from federal income tax. 

Deductions, Not Exemptions: The proposed tax relief is structured as deductions, not exemptions, meaning employers would still withhold for taxes, but workers would deduct the income on their tax filings. 

Potential Beneficiaries: The overtime exemptions could benefit a wide range of workers, including those in manufacturing, mining, construction, and public safety. 

Reporting Requirements: The House Ways and Means (.gov) suggests that businesses would need to comply with reporting requirements, tracking tips and overtime to report them separately on W-2 and 1099 forms. 

FICA Taxes Still Apply: Tips and overtime would still be subject to FICA taxes (Social Security and Medicare). 

https://www.google.com/search?q=no+tax+on+tips+and+overtime+in+the+house+bill+2025

No Tax on Social Security

H.R.904, also known as the "No Tax on Social Security" bill, was introduced in the House of Representatives on January 31, 2025,. This bill proposes to amend the Internal Revenue Code of 1986 to remove Social Security benefits from being included in gross income for federal income tax purposes. The bill would also provide funding to ensure the Social Security trust funds are not negatively impacted by the tax removal. 

Here's a more detailed look:

HR 904: This House bill, introduced on January 31, 2025, aims to eliminate federal income taxes on Social Security benefits. 

Impact on Taxable Income: The bill seeks to amend the Internal Revenue Code to remove Social Security benefits from being considered as part of an individual's gross income, meaning they would no longer be subject to federal income tax. 

Funding” The bill includes provisions to ensure that the Social Security trust funds are not negatively impacted by the elimination of taxes on benefits. This would involve appropriations from the Treasury to cover any reduction in transfers to the trust funds. 

Potential Tax Savings: If passed, the bill could provide tax relief to Social Security recipients, potentially saving them a significant amount of money. 

Future Status:  The bill is currently in the House of Representatives and has not yet been passed or enacted into law. 

https://www.google.com/search?q=no+tax+on+social+security+in+the+house+bill+2025

No Tax on Auto Loan Interest

The "One Big Beautiful Bill," recently passed by the House, includes provisions related to car loan interest deductions and potentially extends some existing tax breaks. Specifically, the bill offers a deduction for car loan interest, up to $10,000, for vehicles purchased between 2025 and 2028. It also includes measures to extend existing tax breaks and potentially adds new ones, including no taxes on tips and overtime pay. 

Here's a more detailed breakdown:

The bill allows a deduction of up to $10,000 for car loan interest payments made between 2025 and 2028. 

The bill seeks to extend some of the tax cuts passed during President Trump's first term in 2017. 

The bill also includes new tax breaks, such as no taxes on tips and overtime pay, and potentially car loan interest. 

The bill may also impact clean energy incentives, potentially removing some existing credits and other measures. 

https://www.google.com/search?q=auto+tax+break+in+house+bill+2025

Norb Leahy, Dunwoody GA Tea Party Leader

US Steel Imports 5-24-25

The US can and does produce its own steel. The US is a major steel-producing nation, though it has faced challenges in maintaining its global dominance. In 2023, the US was the fourth-largest steel producer globally, according to the World Steel Association.  

The steel industry in the U.S. is concentrated in several key regions, with Indiana leading in steel production. Historically, states like Indiana, Ohio, Pennsylvania, and Michigan have been major hubs for steel mills, but more recently, other states like Texas, North Carolina, and Alabama have also become significant players. 

https://www.google.com/search?q=where+are+the+us+steel+mills+located

U.S. Steel ranks lowest among domestic producers, operating at 76% of capacity.

In 2023, the United States produced approximately 80 million metric tons of raw steel.

In 2023, the U.S. consumed approximately 93 million tons of steel,

The US auto industry consumes a small portion of domestically produced steel. In 2023, it used about 11 million metric tons (Mt) of steel, which is roughly 14% of total domestic steel production. 

The top five countries exporting steel to the United States are Canada, Mexico, Brazil, South Korea, and Japan. These countries together account for over 80% of US steel imports. While China is the world's largest steel producer and exporter, tariffs have limited its exports to the US. 

Canada is a major exporter of steel to the United States, and the US is Canada's largest export market for steel. In 2019, 89% of Canada's steel exports went to the United States. In 2024, Canada shipped nearly 6 million metric tons of steel to the US, accounting for about 23% of US steel imports. Canada is also a major supplier of aluminum to the US, with nearly 60% of US aluminum imports coming from Canada. 

Mexico is a significant exporter of steel to the United States, with a substantial portion of its exports going to the US market. In 2024, Mexico's exports of iron and steel to the US reached $3,543 million, representing 89.8% of total Mexican exports. In 2024, the US imported 3.52 million metric tons of steel from Mexico. This figure represents a 16% decrease from the 3.80 million metric tons imported in 2023. 

In 2024, Brazil was a major supplier of steel to the US, particularly steel plate. According to the Rio Times, Brazil supplied 60.7% of US steel plate import demand that year, exporting 3.4 million tons of steel to the US. However, recent U.S. tariffs on Brazilian steel and aluminum could significantly impact this trade relationship. 

South Korea is a significant steel exporter to the United States, and the US is a major market for South Korean steel exports. South Korea's annual steel exports to the US typically range between 2.3 and 2.6 million metric tons. Key steel exports include steel pipes, hot-rolled steel sheets, and heavy plates. 

In 2024, Japan's steel exports to the U.S. were 1.18 million tons, valued at $2 billion. This represents 1.4% of Japan's total exports to America. Japan had an annual duty-free quota of up to 1.25 million tons of steel for the U.S., which it did not fully utilize in 2024. Japan's top steel exports to the U.S. include wire of iron or non-alloy steel, flat-roll stainless steel products, and wire of other alloy steel. 

Comments

Additional Steel is needed to use in building new manufacturing plants in the US. The US needs to add 10.72 million tons of steel to its production to meet us consumption.

Norb Leahy, Dunwoody GA Tea Party Leader