Pittsburgh-based United States Steel plans to halt production at a Michigan plant, resulting in a temporary layoff of up to 200 workers, CNBC reports.
Why it matters: President Trump has boasted that the U.S. steel industry has been "thriving" since he took office, following a 2016 campaign promise to revive American manufacturing. Overall, domestic steel prices have decreased along with demand, causing the company to readjust production in several cities.
Context: American steel prices initially increased as a result of the first round of Trump's tariffs on steel imports, but subsequently dropped due to weakening demand from the auto and farm machinery sectors, per CNBC.
- U.S. Steel's stock price has plummeted 73% since March 2018, which is when Trump announced his decision to reign in foreign steel imports.
- Job growth in the steel industry has largely been flat due to plants becoming more reliant on automation, the New York Times reports.
What to watch: The layoffs could last for up to six months. They will impact nearly every sector of the plant, from blast furnace to finishing operations, a company spokeswoman told Reuters.
