The United States Steel Corporation announced on Wednesday that it plans to reopen part of a plant in Illinois after President Trump announced a new tariff on imported steel.
U.S. Steel said it is reopening the plant because it anticipates the announced tariff will cause an increase in domestic demand for steel.
“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,” said U.S. Steel President and CEO David Burritt.
{mosads}Burritt also praised Trump for recognizing steel imports as a national and economic security threat.
Trump announced last Thursday that he would be placing a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum. The actual tariffs have yet to be released but it is expected the president could sign them sometime this week.
U.S. Steel said it expects to rehire 500 employees this month, although getting the plant up and running again could take up to four months.
“We’ve worked closely and cooperatively with leadership of the United Steelworkers to develop a plan that will help us work through the restart process in the safest, most efficient manner possible while enabling longer-term collaboration designed to improve the plant’s competitiveness,” Burritt said.
Trump’s proposed tariffs have been widely criticized, even by members of his own party. His economic advisor Gary Cohn, a fervent supporter of free trade, announced on Tuesday that he would be leaving the administration.
Many fear that the tariffs could lead other nations to retaliate, triggering a trade war.
The European Union has said it is would likely place its own tariffs on U.S. imports if Trump implements his tariffs on EU exporters.