Trump Tariffs Boost Steel Jobs but Squeeze US Manufacturers

Washington, Feb 25 : The restart of a blast furnace at U.S. Steel’s Granite City facility in Illinois has been hailed by workers as proof that the Trump administration’s steel tariffs are reviving American industry. The reopening is expected to bring back around 400 union jobs, offering relief in a community long battered by layoffs.

For employees like Braden Morris and Eric Addison, the recall meant a return to wages above $30 an hour after months of lower-paying work. Local union leaders credited trade protection measures for boosting demand for domestically produced metal and stabilising plant operations.

The administration has defended the policy as essential to national security and industrial self-reliance. Officials argue that restricting imports has strengthened capacity utilisation at US mills and reduced dependence on foreign suppliers.

However, the broader manufacturing landscape presents a more complicated picture.

About 800 kilometres away in St. Paul, Minnesota, Park Tool — a family-owned bicycle tool manufacturer — is grappling with rising input costs. CEO Eric Hawkins said higher prices for steel and aluminium have forced a 10% increase in product prices, slowing growth and straining global sales. The company, which exports to roughly 70 countries, is also navigating shifting tariff rules and increased paperwork.

The recent Supreme Court ruling limiting the president’s authority to impose certain reciprocal tariffs has added fresh uncertainty. While the steel duties remain intact, businesses face the prospect of new trade measures under alternative legal provisions.

Economists note that downstream industries employ far more workers than primary steel production. Research from previous tariff rounds found modest job gains at mills but significantly larger employment declines across manufacturing sectors that rely on competitively priced raw materials.

Industry representatives counter that without safeguards, subsidised imports could undermine domestic capacity altogether. Data from trade groups show improved utilisation rates at American steel plants since the introduction of tariffs, though overall production volumes have fluctuated.

Manufacturers dependent on complex international supply chains say reshoring specialised components is neither quick nor inexpensive. Hawkins pointed out that mould production costs for certain parts are several times higher in the US compared with Asia, making abrupt shifts impractical.

The debate underscores a central tension in US trade policy: while some communities see renewed industrial momentum, many producers face rising expenses, overseas backlash and regulatory uncertainty. As policymakers weigh the next steps, businesses across the country remain braced for further changes in America’s evolving tariff strategy.