In Michigan steel towns, tariffs meant to revive industry cost jobs

[Eugene]

Source: Reuters

BUSINESS NEWS SEPTEMBER 26, 2019 / 6:06 AM / UPDATED AN HOUR AGO

In Michigan steel towns, tariffs meant to revive industry cost jobs

Rajesh Kumar Singh
6 MIN READ

ECORSE/RIVER ROUGE, Michigan (Reuters) - Some steelworkers who cheered U.S. President Donald Trump’s tariffs on foreign steel last year are now being laid off, an unintended consequence of his America First policy as United States Steel Corp (X.N) reacts to sagging demand from automakers reeling from higher steel prices.

Steel prices rallied following the tariffs imposed in March, 2018, feeding optimism in U.S. steel towns. But higher prices later hurt demand from automakers already squeezed by slowing demand for traditional gasoline-powered sedans.

Trump’s tariffs still enjoy support in the Rust Belt communities that helped elect him in 2016. But U.S. Steel’s layoffs, first reported by Reuters last month, demonstrate some of the risks he faces as he seeks re-election in 2020.

Steel prices peaked in May 2018 and have retreated to pre-tariff levels after American factories boosted production and demand weakened.

In June, U.S. Steel idled a blast furnace at the local Great Lakes Works plant in the cities of Ecorse and River Rouge Michigan, an electoral swing state. Two months later, the company decided to temporarily let go of 48 of employees and warned of up to 200 more layoffs by the end of September.

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Read more: https://www.reuters.com/article/us-usa-trade-steel/in-michigan-steel-towns-tariffs-meant-to-revive-industry-cost-jobs-idUSKBN1WB14W

[Demsrule86]

1. Tariffs have hurt us badly.

[Indykatie]

2. Trump has Given Dems an Education in What Doesn't Work in Trade Policy

Perhaps that will temper some of the anti-trade fervor and love for tariffs that exist in some segments of the Dem party. I expect to see lay offs begin to pick up in Q3. My Employer is announcing an early retirement offer as a first step towards a RIF next week.