Press "Enter" to skip to content

Ross Says Tariffs Working Despite U.S. Steel Plant Layoffs

© Reuters. Ross Says Tariffs Working Despite U.S. Steel Plant Layoffs

(Bloomberg) — U.S. Steel Corp.’s decision to close a giant plant in Michigan and lay off as many as 1,545 workers doesn’t mean the import tariffs placed on steel and aluminum by President Donald Trump aren’t working, U.S. Commerce Secretary Wilbur Ross said.

Many of those laid off at the U.S. Steel facility outside of Detroit will be able to find work in nearby General Motors Co (NYSE:). and Ford Motor (NYSE:) Co. plants, Ross said in an interview Friday with Bloomberg Television. The problem with U.S. Steel’s Great Lakes plant, Ross said, is that it was just too high-cost to run.

“What is happening is they are rationalizing a bit their production so that they will be more competitive in the future as we continue to go forward,” he said.

In 2018, after the tariffs were put in place, several steel companies announced plans to boost production. Those included U.S. Steel, which restarted two blast furnaces in Granite City, Illinois, that year. But on Thursday, the Pittsburgh-based company warned of a fourth-quarter loss and announced it will shut down most of its Great Lakes Works facility, lay off workers and slash its dividend. The company’s shares fell 11% to $11.86 at 2:47 p.m. in New York.

“There has been much more capital invested in the steel and aluminum industries,” Ross said Friday. “On balance, they have both added jobs.”

(Adds shares in fourth paragraph)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com