Major US Steel Manufacturer In Michigan Lays Off Hundreds

Over the last couple of months, the automotive industry has been under siege due to the imposing tariffs that President Donald Trump has imposed on foreign countries, especially our neighbors Canada and Mexico. This has made it more difficult and expensive for necessary materials to make their way into the country. Although this seems like a barrier, this could promote local production.

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The Automotive industry has been affected more than others due to the expensive prices for steel, aluminum, and other metals. Since the prices of vehicles and their materials have been rising, the demand for cars has continued to decrease. Many people in the United States are choosing to keep their cars for longer and aren't looking to purchase new vehicles.

Us Steel Manufacturer Lays Off Hundreds in Michigan

This has led to many manufacturers have expanded inventories and halting the need for production at the moment. Steelmaker Cleveland-Cliffs Inc. has already started to make some layoffs in response to these metrics, but they are now about to make more, this time in Michigan. They will be putting a pause on operations at their Dearborn plant due to the current reality of weak automotive production in the U.S.

This move will affect about 600 employees as they will temporarily be out of work. Cleveland-Cliffs told the workers in Minnesota that they would be returning to work soon but did not provide that same solace to those in Michigan as their future will be uncertain when the layoffs begin in May.

The Dearborn location will remain operable with under 550 employees, and they believe that, once President Trump’s policies take full effect and automotive production is re-shored, we should be able to resume steel production at Dearborn Works. The layoffs are an attempt to rebalance working capital needs and use the inventory they have stocked up.

This may not be ideal for those who are going to be without work for the moment, but this does seem to be a positive approach towards the impacts that the tariffs could have on the country and the automotive industry.