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US Steel To Temporarily Layoff 200 Michigan Workers

Steel tariffs have hit the steel producers and users in the automotive industry very hard. Ford CEO Jim Hackett said in September of 2018 that the tariffs had cut $1 billion in profit from Ford’s bottom line. With increased steel tariffs come reduced demand, coupled with the reduced car sales for most major automakers, it means that demand for steel is at a low. Major steelmaker US Steel has announced that it will be temporarily laying off fewer than 200 workers in the state of Michigan.

US Steel plans to pause production at the Great Lakes facility in Michigan. US Steel warned that it would idle two blast furnaces at its Great Lakes and Gary Works plants (not pictured) in mid-June. The company has pointed directly at lower steel prices and softening demand as a reason for idling the plant. U.S. Steel has stated that the layoffs at the Michigan Great Lakes plant could last more than six months. The layoffs will impact nearly every area of the facility from the blast furnace to finishing operations.

When President Trump imposed tariffs on imported Chinese steel, prices for domestic producers did temporarily rise. However, steel prices have dramatically dropped amid improved supplies and weakening demand from the auto industry and farm machinery sectors.

There is a bit of confusion with the US Steel Gary Works facility in Indiana. A United Steelworkers union official said that layoffs were planned for the Gary Works plant. However, a US Steel spokeswoman said that the company “currently” doesn’t expect “any employee level changes” at Gary Works. Prices for hot-rolled coil are down nearly 37 percent from their high in 2018. Stock in US Steel has taken a beating down 73 percent since March 1, 2019.

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Shane is a car guy with a fondness for Mustangs and off-roading.

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  1. Rich

    This doesn’t make any sense. PresidentTrump put tariffs on imported steel, making American Steel more competitive. So whose still buying the crummy high priced imported steel? Come on steel using industries, get behind President Trump and Make America Great Again, hell man, he put his whole on hold for us and to stop foreign countries from stealing from us.
    Whats the slogan? Once a traitor, always a traitor? You sold America out by buying foreign products that were only cheaper because of cheap labor and their government subsidizing. Now that the playing fields are being leveled out you should come back home and do business the American way by buying American Products made in the USA by Americans.

    1. Steve

      Amen Rich!!! I have always said that the United States doesn’t NEED trade with the world, we can make everything we need right here!! Trade is a good thing, don’t get me wrong, but if there are bad players, stop playing with them! This story is all political nonsense! Come on America! Let’s do something for our OWN country for a change!


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