President Donald Trump made a big announcement when he talked about the tariffs being placed on foreign steel and aluminum. He’s faced controversial opinions regarding the taxes being placed, and numerous companies have acted differently in regards to the announcement. One company reacted by giving people the best news of their lives as they announced the callback of 500 employees who will now have a job again. That company is called United States Steel, and they’ve embraced Trump’s tariffs on imported materials and they possibly see this as nothing more than a benefit for another great American industry that provides jobs to hard-working Americans. The company fired up one of their two blast furnaces, used to help make steel, and people became aware that they would once again have work and money to feed their family. This is excellent news for the hardworking people of Granite City, IL.
It’s reported that US Steel believes the imported materials are a threat to the American economy. It’s suggested that continually importing materials is one way that reduces some of the jobs here in America. If we can produce the materials, then we should – but sometimes companies seek business in other countries where it might be cheaper or there could be tax breaks involved. Trump seems like his intentions are to bring as much business back to America in hopes to provide more citizens with jobs.
US Steel stated that their startup process could take several months and they’ll be calling back about 500 employees. The callbacks are reported to begin this month.
Fox2Now reported more on the great announcement and jobs being reinstated:
“Our Granite City Works facility and employees, as well as the surrounding community, have suffered too long from the unending waves of unfairly traded steel products that have flooded U.S. markets,” writes U. S. Steel President and Chief Executive Officer David B. Burritt in a statement.
US Steel says that steel imports are a threat to national and economic security. Company leaders praise President Trump for beginning to level the playing field so companies can compete.
The restart process could take up to four months. The company anticipates calling back approximately 500 employees beginning this month.
Both Granite City Works blast furnaces and its steelmaking facilities were idled in December 2015. The plant’s hot strip mill was idled in January 2016 in response to challenging market conditions.
Big business has sent distress signals since President Trump decided to impose tariffs on steel and aluminum. Trump plans to impose a 25% tariff on foreign steel and a 10% tariff on foreign aluminum. It’s unclear whether certain countries will be exempt.
China has long been accused of flooding the global market with cheap steel at prices that are unfairly low by US standards. Previous US administrations have imposed a litany of trade barriers on Chinese steel, which only accounts for about 2% of US steel imports. But China continues to sell en masse elsewhere, which suppresses global prices.”
President Trump’s announcement on tariffs will also help eliminate the flooding of cheap materials from China. Trump would like to produce our own materials and eliminate the need to put American businesses in other countries. If America is to receive imported materials, then there will be a tariff and the items will come at a cost. Of course, some things just need to be imported if America is unable to produce them, but many do not.
This could also help improve the quality of the products as America slowly resorts back to building their own products instead of cheaply made foreign products which have received numerous complaints over the years. This becomes a controversial talking point as some American products are often made cheap as well, thanks to some companies being greedy or workers being lazy and not doing their part to produce the top quality that consumers often wish for – and are willing to pay for.
Fox2Now reported that this could target numerous countries that import steel:
“Trump’s measure would also target US allies such as Canada, Mexico, South Korea and Brazil, all of which import more steel to the United States than China.
A 2003 report from the U.S. International Trade Commission found that the tariffs caused headaches for some businesses. Nearly half of companies told the ITC they had trouble getting the quantity or quality of steel they needed. Employment in steel-consuming industries, such as car companies, fell or stayed flat. About a third of these companies reported production delays.
Corporations’ profits rose, but companies cut back on investing in their operations — for example, buying new equipment — as they faced less foreign competition. Nearly 20% of companies said they passed higher prices on to consumers.”
It appears as though the goal behind the tariffs is to bring the steel making business back to America and impose a tax on the imports. Some view the charge as a punishment. Others see the tariff announcement in a positive nature as it brings more jobs back to American people. US Steel must be enjoying this.
If you were wondering how steel is made, then watch this video: