Although U.S. steel producers are reaping benefits from the upcoming tariffs President Donald Trump signed off on last Thursday, some U.S. manufacturers could take a hit from the tariffs.
Many U.S. steel producers have unveiled plans to expand operations across the nation as global tariffs are scheduled to kick in later this month.
President Donald Trump last Thursday signed proclamations for global tariffs of 25 percent on steel and 10 percent on aluminum, which are scheduled to take effect March 23.
Canton, Ohio-based Republic Steel, a provider of special bar quality (SBQ) steel, revealed last Thursday that it is positioned to restart its Lorain, Ohio facility – including its idled electric arc furnace, casters and rolling mills – as a response to the steel tariffs.
This could result in Republic bringing back 1,000-plus jobs to its Lorain facility.
The company anticipates that it would take a few months to hire and train employees, and restart its idled equipment.
“Republic is more than prepared to support market demand that has been previously supplied by imports,” Republic President and CEO Jaime Vigil said. “We maintained our Lorain facility while it’s been idled waiting for the opportunity to restart and it appears that time is finally here.”
Meanwhile, Charlotte, N.C.-based Nucor Corp. revealed Monday it would build a rebar micro mill in Frostproof, Fla.
The $240 million investment is the second rebar micro mill Nucor is constructing, with the company announcing a rebar micro mill project in Missouri back in November.
The rebar micro mill in Florida will have an estimated annual capacity of 350,000 tons and construction is expected to take two years. The facility is expected to employ about 250 people.
Just last Wednesday, Pittsburgh, Pa.-based U.S. Steel Corp. revealed it would restart one of two blast furnaces and the steelmaking facilities at its Granite City Works, an integrated steelmaking plant in Granite City, Ill.
Although U.S. steel producers are benefitting from the tariffs, some U.S. manufacturers are not so pleased with the decision, since some use cheaper foreign steel to make their goods.
Companies such as Simonds International, which manufacturers very large blades and knives, makes its products from a type of steel not produced by any U.S. mill, National Public Radio reported.
Trump said during a press conference Thursday that no Section 232 tariffs would be assessed on Canada and Mexico, pending successful conclusion of the NAFTA renegotiation.
Over the weekend, the European Union and Japan also made it clear they expect to be exempted from the steel and aluminum tariffs, but no final decision has been announced regarding a potential exemption for the European Union or Japan.
“Any exclusions to the tariffs must be narrowly crafted, strategic in nature, and shouldn’t fill the D.C. lobbying swamp,” Alliance for American Manufacturing President Scott Paul said. “The goals of this trade action must be to secure America, increase our steel jobs, slash global steel overcapacity, and stop unfair trade practices that harm workers.”
U.S. steel producers expand footprint as tariffs set to kick in
