It’s been a momentous couple of weeks on the Mesabi Iron Range, notably marred by a major layoff at two mines. But let’s be honest, it’s been a momentous year for the country. Our world is changing. American political institutions are falling apart. People disagree about whether this is good or not, but it’s happening regardless.
But there’s a certain kind of response that really bothers me. It’s the idea that none of this matters and that we won’t be affected. If we look objectively, we see that this isn’t true.
As Cleveland-Cliffs announced 630 layoffs at Minorca and Hibbing Taconite, the company blamed oversupply due to a downturn in the automotive industry. Politicians pointed fingers at each other.
Democrats like Sen. Tina Smith blamed tariffs implemented by President Donald Trump for creating economic uncertainty that now threatens consumer confidence and risks a recession. Republicans, once vocal critics of tariffs, now must toe Trump’s line on the taxes paid by American importers. Congressman Pete Stauber blamed former President Biden for allowing Chinese steel dumping. State Sen. Rob Farnsworth and most other local Republicans blamed Biden for the bad economy.
Stauber’s response seemed to emerge from muscle memory. Chinese steel dumping has been largely contained through strategic tariffs maintained by the past three presidents. Dumping happens when a country subsidizes steel so that it can be sold for less than it costs to make. The line between dumping and regular old competition can be blurry, however. When times get tough, all foreign competition starts to look like dumping. It’s not. The dumping argument doesn’t hold up in 2025 except as a way to rationalize the escalation of a trade war.
Likewise, we must evaluate the claims that Biden sunk the economy.
We should now accept that the fast-growing economy under President Biden fostered far too many inequities and pitfalls for working people. Though inflation was contained, price increases incurred early in Biden’s term still weigh heavily on most people.
Here, our hope for simple explanations betrays us. Biden didn’t directly cause inflation. Rather, the COVID-19 disruption to supply chains, consumer behavior and bipartisan government policies started the inflation. Then epic bacchanals of corporate profit-taking super-charged it. We might agree by now that the economy, while strong in several measurable ways, is dangerously fragile in others.
So that brings us to the tariffs. Did tariffs cause the layoffs at Minorca and Hibtac? Cliffs was quick to avow that they didn’t. But their stated reason — trouble in the auto industry — is directly tied to the shock and chaos of Trump’s arbitrary trade war. Cars remain massively expensive. The used market isn’t cooling down as much as many buyers have hoped. People are losing their discretionary income to housing and expenses, which is hitting the auto demand.
So yes, I am convinced that broad threat of massive, arbitrary tariffs on allies like Canada, Mexico and the European Union created a destabilizing effect on our economy.
I could leave it at that, but after mulling the matter for a few days, I decided to dig deeper into the relationship between tariffs and our current economy. There is historical precedent for what we’re all experiencing. Those of us from the Iron Range experienced in first-hand back in the 1980s. My newest column for the Minnesota Star Tribune, “Iron Range layoffs shows human cost, longterm implications of long-term tariffs,” runs Sunday, March 30 (gift link).
This column goes beyond what I’ve said here in ways you might find interesting. I don’t expect everyone to agree with everything I say, but please consider the risks for places like the Iron Range — the whole state, really — if we don’t stabilize this economy. Beware fool-hearty promises of a sugary-sweet domestic industrial renaissance fueled solely by tariffs and preferential treatment for companies who say the right things to the president. That’s not what stability looks like. That won’t solve the problems that longtime iron miners tell me they see on the horizon.
I want to keep the iron mines open, to modernize them, to add value to a more diverse Iron Range economy. We won’t achieve this without reversing the economic chaos of the past few months.
Patience? Only if the billionaire owners and hedge fund bosses cover the cost. Everyone I know has bills to pay.
Aaron J. Brown is a columnist and member of the editorial board for the Minnesota Star Tribune. His new book about Hibbing Mayor Victor Power and his momentous fight against the world’s largest corporation will be out soon.
2 responses to “When the thundering noise hits home”
Being a life-long Iron Ranger I have a view of history that many might not have. One, I had a great education. In the 1960’s and 1970’s and still remember what I learned in history and civics class. Two, I lived in an area to which resources, industrialization, and immigrants brought continued prosperity . Three, I had parents who both worked and shared with me the benefits, struggles and lessons they experienced in living here. I have acquired knowledge and understanding of things that affect our way of life. My concern is for the way of life for my remaining few years and the years of my children and grandchildren going forward and the actions taken by elected officials.
In my mind, they have work to do and very little time to do it. They need to get along and move it along. Quit pointing fingers at others and take some initiative to make things right. Tariffs are not conducive to the laissez-faire – free market style we have been used to and that keeps the markets more stable. These tariffs are executive orders and could be changed in 4 years so how stable is this new economy? The question I have is how do we create that stable middle class infrastructure like the 1950’s, and do it WITHOUT specified gender roles, discrimination, and exclusion? (The comments of some politicians lead me to believe they are focused on keeping the latter part of that question and not the first part.) Manufacturing was 21-25% of our country’s GDP then. It is 10% now and to reach the numbers of the 50’s AI will be used and fewer people. That means jobs performed by people will be pushed to the remaining areas of the economy – service, employers, self employment, and construction. In the US, 71% of the GDP is the service industry which is very diverse and made up of mostly women. Our elected leaders need to have a plan to build this infrastructure fast because this change will be faster than the Industrial revolution (150 years) and internet fueled Globalization (30-50 years). AI revolution will take only 5-10 years.
I agree that specific and real focus on we the people is lacking. The development of infrastructure means to focus on the needs of workers – insuring a livable wage and affordable healthcare, childcare, training and education. People’s spending fuel the economy more than any other factor. We all do better when we all do better not just the millionaires and billionaires.
This isn’t just Trump. This has been the aim of the right since Roosevelt implemented the New Deal and tax reforms during WW2. They started funding and organizing after the Powell Memo in 1971. Heritage was founded in 1973. There were earlier modifications of the post WW2 economic policy directed at full employment, but the real ending was the Reagan tax cuts. Since then it’s been a continuing assault on ordinary people including Clinton. The Biden administration was the first to try having an industrial policy by handing labor policy to Bernie and Antitrust to Elizabeth Warren.Or Biden’s speech during the UAW strike. The problem is the equity funds and wealth is now so powerful they are embedded in everything. Jeffries and Schumer are essentially bought and paid for by Blackrock. This is what they’ve wanted, and now they’re getting it.