Steel Tariffs Cost Nearly 100 Layoffs at NLMK's Farrel, Pennsylvania Mill

SEATTLE (Scrap Monster): The hefty steel tariffs by Trump administration are being blamed for the recent layoffs at NLMK Farrel, Pennsylvania steel mill. It must be noted that around 80 to 100 workers belonging to the United Steelworkers Local 1016-03 union were laid off last week at the Russian-owned steel mill.

According to reports, the announced layoffs in the plant’s hot mill were the first such layoffs in more than two years. The current schedule also saw layoff of workers in the cold mill too, but that were part of downtime on account of regular maintenance activities.

Although low steel prices might also have been a reason for the layoffs, Bob Miller, President, NLMK Pennsylvania pinpointed hefty tariffs as the key reason. The mill has been running less turns ever since the introduction of tariffs last year. As of now, the announced layoffs will be reviewed weekly, depending upon the changing production requirement. The steel tariffs, aimed at increasing steel prices, have failed to achieve its goal, added Miller.

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Earlier in April this year, the U.S. Department of Commerce had turned down the company’s requests for exemptions from tariffs. The exclusion would have allowed NLMK to import steel slab into the country without paying the hefty 25% tariffs enacted by the U.S. administration an year before. It had claimed that exclusions are necessary as the domestic slab production in the country fails to meet the supply demand from local mills. Incidentally, NLMK imports most of its semi-finished steel slabs from Russia.