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Home / Business / US Steel, once a favorite of Trump's tariffs, plans to lay off nearly 200 workers

US Steel, once a favorite of Trump's tariffs, plans to lay off nearly 200 workers



  Trump Granite City USA Steel AP Photo / Evan Vucci

  • The United States Steel Corporation fired dozens of workers at a Michigan plant and outlined plans to temporarily lay off up to 200 workers in the coming weeks.
  • Last year, President Donald Trump celebrated the move to an Illinois factory owned by US Steel, which initially relied on protectionism.
  • But the steelmaker has had problems since the tariff came into force and has lost billions of dollars in market value since last month.
  • Visit Markets Insider for more information.

The United States Steel Corporation has fired dozens of workers at a Michigan plant and announced plans to temporarily remove up to 200 workers in the coming weeks.

In a Communication on the Adaptation and Retraining of Workers filed this month in the State of Michigan the steel giant said the layoffs were the result of idling operations and other adjustments at the Great Lakes Works plant. [1

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"These additional adjustments to the operation of Great Lakes Works are related to continued challenging market conditions," said US Steel spokeswoman Meghan Cox facility.

According to US Steel, dated August 5, US Steel anticipated that further layoffs at the plant in Ecorse, Michigan, are expected to begin on September 30 and "periodically thereafter, depending on market conditions." The company announced that it would not know when normal production would resume at the plant.

The Trump Government imposed high tariffs on steel in early 2018 to improve competitive conditions for American companies through restrictions on foreign market access. Last year, President Donald Trump celebrated the move to an Illinois US Steel plant, which initially relied on protectionism.

However, the strong production jump occurred at the same time as demand began to cool and steel prices dropped significantly. Hot rolled coil prices have fallen by almost a third since last year's highs.

These conditions created a complicated scenario for companies like US Steel, which use older and more expensive devices than some competitors. In July Bloomberg reported that the steelmaker had lost several billion dollars in market value since the tariff came into force . [19455910]

Trump continued to declare victory over his promise to revive the metal industry through protectionism, which he championed in 2016.

"We make steel, the steel industry is hot, they dumped steel everywhere," the president said at a rally in New Hampshire on Thursday, referring to foreign exporters of the metal. "They've destroyed our businesses, US steel is now on the rise, the steel industry is back, it's going great." [19455919]

The White House did not respond to an email requesting a comment.

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