US Steel to halt production at Granite City mill, workers retained under Trump deal

In the United States, US Steel has announced that it will cease steel production at its mill located in Granite City, Illinois, concluding operations by the end of October 2025. This decision comes after a prior agreement reached between the company and the Trump administration, which ensures that the mill's 900 workers will remain employed during this transition period. The workers will not be involved in steel production but will maintain equipment as ancillary operations continue until at least June 2027, according to the contract which was primarily designed to facilitate the company's acquisition by Japanese steelmaker Nippon Steel. The agreement mandated that US Steel neither lay off workers nor make any alterations to their salaries during this timeframe. Despite the facility's idling, it will not be completely shut down; instead, it will be kept operational and maintained. The company stated that by focusing on steel slab production and processing at their Pennsylvania and Indiana facilities and reducing slab intake at Granite City, they could optimize operational efficiency. They emphasized that production at the mill could resume swiftly if market conditions at some future point warrant it. Trump had touted this agreement at a rally, assuring workers that the terms would protect jobs as part of a larger policy that included imposing 50% tariffs on steel imports. The president expressed his commitment to monitoring the deal closely, asserting that it would provide stability for workers and protect against layoffs and outsourcing. However, labor unions have expressed frustration with the deal, emphasizing the difficulty of enforcing such commitments and highlighting a history of violations by Nippon Steel regarding trade laws. The Granite City Works facility, once a major employer with around 2,000 hourly workers, has seen a significant reduction in its workforce over the years due to the shutdown of its blast furnaces. Only 800 hourly workers are currently employed at Granite City, reflecting ongoing challenges in the steel industry amid global competition and changing market dynamics. While local union leaders supported the deal, the broader United Steelworkers organization cautioned against reliance on the commitments made within it, hinting at potential vulnerabilities in the agreement amid an uncertain industry landscape.