Iron Mine announces suspension of operations
The company cited 'significant fluctuations in global markets that have created an unusual and strenuous amount of uncertainty for buyers and sellers.'
Officials noted, 'We are navigating unchartered waters with unfamiliar and seemingly insurmountable risks. While it pains us to suspend our mining operations, it is a necessary step while we regroup and adjust to current market pressures.'
Iron County Commissioner Ken Robinson said the suspension will hurt both impacted employees and the county.
'It will be painful for sure.'
The St. George News reported the suspension of operations was due to President Donald Trump's tariff on China. The media outlet reported the iron ore is mined in Utah, shipped to China for processing and then returned to the United States.
Trump's tariff against China exports went into effect at midnight.
But Robinson said there are domestic processing facilities available in the United States.
'Hopefully they can enter that market.'
Another commissioner declined to comment due to litigation involving the company, but would not elaborate.
The St. George media outlet, citing Cedar City News, reported that one worker said he hoped people understand how the tariffs are impacting local communities.
'I feel like it's important to raise awareness about the effects Trump's economic policies are having on our local community,' the worker said.
With the mine's status in limbo, the employee said he, like several of his coworkers, had already started updating resumes. This worker said he hopes to find a similar job in the Cedar City area, possibly in manufacturing.
According to the Utah Division of Oil, Gas and Mining, the mine has been in production on and off since World War II.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
9 minutes ago
- Yahoo
Trump says he would ‘like' to strike a trade deal with the EU
US President Donald Trump said on Sunday he would 'like' to strike a trade deal with the EU, adding there was a '50-50 chance'.Trump said Sign in to access your portfolio
Yahoo
9 minutes ago
- Yahoo
China, US to extend tariff pause at Sweden talks by another 90 days, SCMP reports
(Reuters) -Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday, the South China Morning Post (SCMP) reported on Sunday, citing people familiar with the matter. During the expected 90-day extension, the U.S. and China will agree not to introduce new tariffs or take other actions that could further escalate the trade war, the report said. While the earlier discussions in Geneva and London focused on "de-escalation", the latest meeting the Chinese delegation will also press Trump's trade team on fentanyl-related tariffs, the report further said, citing three sources familiar with the matter. Reuters could not immediately verify the report. The White House did not immediately respond to requests for comment. The third round of U.S.-China talks is set to be held in Stockholm on Monday to tackle longstanding economic disputes at the centre of the countries' trade war. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
11 minutes ago
- Miami Herald
Why tariffs may not be a big deal after all
Key Points: Tariffs initially caused market anxiety and a 19% S&P 500 decline from February to April.A feared spike in inflation from tariffs hasn't materialized yet. Companies have largely managed tariffs by negotiating lower prices, absorbing costs, or modest price increases, keeping overall inflation mostly in have rebounded as the tariff impact proved less severe than expected. Better-than-forecast outcomes and ongoing trade deals have lifted the S&P 500 to an all-time estimated tariff duties are not being collected because of enforcement complexity. This, along with over 50% of imports not being subject to tariffs, has lessened the drag on the economy. It wasn't that long ago that President Donald's Trump's tariff strategy kicked up a hornet's next of debate. Those favoring tariffs, which are taxes on imports, argue that they are the best way to kick-start U.S. manufacturing. Opponents believe tariffs are inflationary, sparking higher prices that can derail the U.S. economy, risking recession. The truth may wind up landing somewhere in the middle. Tariffs can slow an economy, particularly if they increase quickly and significantly, like what President Trump originally proposed this spring. However, billionaire fund manager Ken Fisher, founder of Fisher Investments, points out that in the U.S., tariffs' impact may be more muted than expected. Image source:Legendary fund manager Paul Tudor Jones equated the originally proposed tariffs as the biggest new tax since the 1960s. In February, President Trump enacted 25% tariffs on Canada and Mexico. He also implemented a 25% tariff on autos, a 10% tariff on all imports, and after much wrangling, a 30% tariff on China. Related: Billionaire fund manager explains why so many missed the stock market rally The end result of those tariffs is that the average effective tariff rate currently is 20.2%, the highest since 1911, according to the Yale Budget Lab. JPMorgan Chase calculates the effective tariff rate was 2.3% in 2024, and is about 17% currently. Either way, a big bump in import taxes led many to worry that U.S. companies would be forced to pass along higher-than-normal price increases, causing inflation to spike and household and business spending to fall. That concern contributed heavily to the S&P 500's 19% tumble from all-time highs in February to the low in April. While risk remains that companies will see revenue growth and earnings slow because of the impact of tariffs, so far, inflation remains manageable. The Consumer Price Index for June showed headline inflation of 2.7%, up from 2.4% in May, but below the 3% inflation rate registered in January. It appears as of now that companies are successfully navigating the tariff hit, mostly through a combination of negotiating lower prices with exporters, absorbing some of the costs, and more modest price increases. More Tariffs: Luxury carmakers have a more aggressive tariff battle planTop 6 cars, SUVs, & trucks that may avoid tariffs, Consumer Reports saysAmazon's quiet pricing twist on tariffs stuns shoppersLevi's shares plan to beat tariffs, keep holiday prices down Of course, some industries - such as autos, appliances, apparel, and furniture - are hit harder by tariffs. Still, overall, inflation has yet to reach levels suggesting a major retrenchment in spending that could further weaken the economy. The better-than-hoped outcome, coupled with optimism that ongoing trade deals, such as the one recently reached with Japan, which lowered tariffs to 15% from 25%, would result in lower tariffs than initially feared, has helped the stock market recover all of its losses since February. The S&P 500 closed on July 26 at an all-time high. Ken Fisher founded Fisher Investments, a money manager with $332 billion in assets under management, in 1979. Over his 45-plus year career, Fisher has seen a lot of good and bad economies and markets. Related: Another automaker is forced to shift strategy due to tariffs He's not a fan of tariffs, saying previously that they historically hurt the country imposing them more than the country they've been imposed upon. Still, he also points out that the widespread threat associated with a tariff-driven economic recession may not be as big as some make it out to be. "Tariff terror abounds, but 'tariffied' investors miss what markets don't," wrote Fisher on X. "While universal tariffs are foolish and a real economic negative, their real world bite is often muted." Fisher had previously forecast that enforcing tariffs would be incredibly difficult, and that we'd see significant difficulty in collecting them. He also opined that high tariffs would likely cause the black-market import business to soar. He appears to be right. "Through June, roughly 39% of estimated tariffs duties were actually collected - far less than many feared - owing to tariff enforcement's complexity," said Fisher. "Markets move on the gap between reality and expectations, and it's always bullish when reality settles in better than overly dour expectations." Fisher also pointed out that over 50% of imports aren't subject to tariffs. This isn't to say that the U.S. economy would be better off without tariffs in terms of growth, but only that the drag on the economy may not be as bad as originally feared. According to Yale Budget Lab, current tariffs are reducing U.S. GDP this year by about 0.8%. In short, the stock market priced in a worst-case outcome from tariffs, providing plenty of room for positive surprises. Anything less than terrible can be viewed as a win that may lift analysts expectations for revenue and profit growth - the lifeblood of stock market returns. Related: Legendary fund manager has blunt message on 'Big Beautiful Bill' The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
