Source: Star Tribune
March 20, 2025 at 6:09PM
More than 600 Iron Range steelworkers will be out of a job as mines that supply the struggling auto industry go offline. Cleveland-Cliffs will temporarily idle two Minnesota operations: Hibbing Taconite Co. in Hibbing and the Minorca Mine in Virginia. The Ohio-based company, North America's largest producer of flat-rolled steel, has notified the state of the upcoming layoffs, according to a statement Thursday.
"These temporary idles are necessary to rebalance working capital needs and consume excess pellet inventory produced in 2024," the statement said. "We remain committed to supporting our employees and communities while monitoring market conditions." While Cleveland-Cliffs executives say they expect President Donald Trump's tariff plans to shift the industry in their favor, tariffs are shaking up the U.S. auto industry and could have downstream effects on American-made steel.
After a 60-day period under the federal Worker Adjustment and Retraining Notification (WARN) Act, 630 employees will be laid off, according to the company. The two plants produce steel pellets used in automobile manufacturing.
As Trump's nascent trade war takes hold, Minnesota taconite producers may benefit from a 25% tariff on steel. Still, analysts aren't anticipating the import tax will boost domestic production enough to replace imported steel. U.S. steel production capacity rose just 7% after tariffs were implemented during Trump's first term, according to a March 12 report from RBC Capital Markets.
Read more: https://www.startribune.com/iron-range-layoffs-cleveland-cliffs-taconite-steelworkers/601240194