Trump's steel tariffs create big profits but few new jobs
SEDALIA, Missouri (Reuters) - Nucor Corp, America’s largest steelmaker, planned a new plant in Sedalia, Missouri, long before U.S. President Donald Trump imposed tariffs to protect the industry – and it does not need them to make money.
Although the firm helped lead the lobbying push for tariffs on imports, executives say they invested in Sedalia and two other sites to capitalize on an already profitable strategy that doesn't depend on government help.
While Trump has played up the narrative of downtrodden steel workers losing jobs to unscrupulous foreign competitors, most of the benefit from his 25 percent tariffs are flowing to the already strong bottom lines of Nucor and other modernized and globally competitive U.S. steel firms, according to interviews with industry executives, experts and a Reuters review of company earnings.
Even if tariffs prompt such firms to expand, they are not likely to add large numbers of factory jobs because they have stayed competitive by slashing the amount of labor required to make steel.
The Commerce Department said in a statement to Reuters that tariffs will help the Sedalia plant and 12 other steel projects create about 3,405 jobs. That's a 2.4 percent gain industrywide, according to the American Iron and Steel Institute.
About 1,400 of those jobs at six projects, including the three Nucor sites, were planned before tariffs or do not rely on them, according to some of the firms and a Reuters review of company documents. In addition, two other projects by Republic Steel, which would create 690 jobs by restarting previously idled operations, are not certain to go forward, the company said.
https://www.msn.com/en-us/money/markets/trumps-steel-tariffs-create-big-profits-but-few-new-jobs/ar-BBPEEZ6?li=BBnbfcN
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