In Michigan steel towns, tariffs imposed by Trump to revive the industry end up costing jobs

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U.S. Steel is laying off workers amid sagging demand from automakers reeling from higher steel prices

ECORSE/RIVER ROUGE — 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. reacts to sagging demand from automakers reeling from higher steel prices.

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 its employees and warned of up to 200 more layoffs by the end of September. “Imported steel was killing us,” said River Rouge Mayor Michael Bowdler, who was laid off in 1981 from Great Lakes Works. “Something had to be done,” said Bowdler, a Democrat.

It has proposed a US$600-million investment to upgrade Great Lakes Works and make it more efficient, a commitment local officials called encouraging. But U.S. Steel wants a tax break from Ecorse and River Rouge to carry out the investment, which will not create new jobs.DEMOCRATIC CONUNDRUMNews of temporary layoffs at Great Lakes Works spurred criticism of Trump’s trade policies from Democrats including presidential hopeful Beto O’Rourke and Michigan Representative Rashida Tlaib.

 

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