Until recently, a major steel rail facility in Pueblo, Colo. supplied a significant portion of rail used by several of the nation’s largest freight carriers. It was a reliable domestic source for one of the most essential components in the freight transportation system as well as for intercity passenger and commuter rail, which often ride on railroad lines owned by freight rail companies.
That changed this summer when a private equity group, Atlas Holdings, acquired the facility after its previous foreign (Russian) owner came under pressure from the U.S. government to divest. Atlas Holdings is a firm founded in 2002 that acquires, builds and operates distribution and manufacturing businesses. Rather than honor longstanding agreements that railroads depend on to plan maintenance and ensure safety, the private equity group immediately demanded drastic price increases — increases America’s freight railroads cannot and should not be forced to accept.
According to Trains Pro, a rail industry newsletter, in a story published on Dec. 18, 2025, “four days after Atlas acquired the mill, its executives told UP (Union Pacific) that it would not deliver rail unless UP paid a price 61% higher than specified in the contract” and according to a UP lawsuit, “Atlas representatives further threatened to force Evraz into bankruptcy if Union Pacific refused to pay the increased price, claiming Atlas was the largest secured creditor and therefore Union Pacific would have no remedy against Evraz under the law.” The group has now halted deliveries entirely to some of the nation’s largest railroads and is even threatening bankruptcy unless its demands are met.
This is far more than a commercial dispute. It is a direct threat to the integrity of America’s transportation infrastructure. Railroads maintain a limited amount of steel rail inventory, but once those supplies run out, there are effectively no domestic sourcing alternatives. The only other major U.S. producer, located in Indiana, does not have the additional capacity to take up the Pueblo facility’s slack. And without new deliveries, major freight railroads will soon be unable to maintain their networks to the highest safety standards — a scenario that would disrupt freight supply chains and passenger rail operations, weaken economic stability, and create a genuine national safety and security vulnerability.
To maintain its position as a global leader in the 21st century, it is essential for the United States to encourage greater involvement from the American business sector. Companies must embrace Corporate Patriotism, prioritizing national interests and security alongside their pursuit of profits.
For decades, many of the nation’s freight railroads have invested heavily in American steel production because they understand the importance of a strong domestic industrial base. But they cannot be held hostage by a group attempting to extract massive profits from essential infrastructure and, ultimately, from American consumers. If domestic supply collapses, the only remaining option will be to turn to foreign producers.
These imports involve long lead times and higher costs, including significant tariffs and duties — all of which will be passed on to shippers and consumers alike. Railroads would be justified in pursuing such alternatives to defend against predatory behavior here at home, but such an outcome would be a real shame since it is entirely avoidable. It also ultimately runs counter to the Trump Administration’s tariff objectives, which were never intended to enable price gouging of established U.S. companies like railroads that reinvest billions back into their infrastructure – and the American economy – year after year.
Contracts should be honored and enforced, and predatory behavior that threatens critical supply chain infrastructure cannot be allowed to stand. Ensuring dependable and affordable sources of materials for the U.S. freight rail industry is essential to safeguarding the nation’s economic and national security.
For generations, America’s freight railroads have been the quiet workhorses of the nation’s industrial economy — and among the most dependable consumers of domestically produced steel. Their steady, predictable demand for high quality American steel rail has helped keep U.S. steel manufacturing viable through economic cycles, foreign competition, and shifting industrial trends. Few sectors have done more to sustain domestic steelmaking capacity than the railroads that rely on it every day to keep the country moving.
Domestic companies should be policed if they are undercutting the Trump administration’s push to insource the production and sale of steel to American customers.
Leif Larson is a noted strategist with 20 years of experience in PR, public affairs and politics. He has contributed to the success of prominent political, corporate and advocacy groups across the country throughout his career.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
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