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Trump blocked Granite City Works closure, commerce secretary says

Outside of the US Steel plant in Granite City, Ill.
Josh Carter
/
Belleville News-Democrat
During an extensive CNBC interview, Commerce Secretary Howard Lutnick appears to have referenced the Metro East steel mill.

On CNBC on Thursday, U.S. Commerce Secretary Howard Lutnick appears to have said the Trump administration prevented the complete closure of Granite City Works.

Lutnick called the newly acquired U.S. Steel’s plans to “close one of the plants” — presumably Granite City Works — “nonsense.”

“The idea of making people live to what they say is a smart way to do it,” Lutnick said.

The U.S. Steel-Nippon deal included a “golden share” that gives the federal government the authority to appoint a company board member and a say in decision making on domestic steelmaking.

The secretary’s brief remarks amount to the first public comments the Trump administration has made regarding the fate of the Metro East mill since approving the $14 billion sale of U.S. Steel to the Japanese firm Nippon. However, there still remains a multitude of questions about the plant, which is instead slated to wind down processing steel at the end of October.

“It was interesting to say the least,” Craig McKey, president of the local chapter of the United Steelworkers union, said about Lutnick’s comments.

The Commerce Department and a spokesperson for U.S. Steel did not immediately respond to requests for comment.

“We appreciate that they upheld that portion of it,” McKey said of the Trump administration. “But we also know that in regards to Granite City Works only being included to 2027 — instead of 2035 like the rest of the facilities — more than likely meant by June of 2027 they are done doing business here in Granite City.”

During an extensive CNBC interview Thursday, the network’s hosts asked Lutnick about the Trump administration’s deals with private industry — like Intel and Nvidia.

Nippon made a slew of promises as part of its deal with U.S. Steel, including $11 billion in investments at various mills in Pennsylvania, Indiana and Arkansas — but not Illinois.

Drone photograph showing the foundry at U.S. Steel in Granite City, Ill.
Joshua Carter
/
Belleville News-Democrat
Drone photograph shows the foundry at U.S. Steel's mill in Granite City in July.

After it was communicated that Nippon planned to close a mill, Lutnick said the federal government-appointed board member had a conversation with the Nippon CEO.

“I don’t think so,” the board member told the CEO, according to Lutnick.

Generally, after a merger is complete, little can be done to reverse a decision like that, Lutnick said.

“We have that say,” Lutnick said of the golden share. “Donald Trump enforced it.”

While Lutnick didn’t name the mill, Granite City’s union membership believes Lutnick was referring to their operation.

“Yeah, you couldn't convince me otherwise,” McKey said.

Other union members shared the video on social media — like Dan Rhyne, treasurer of the local union.

“It just made me feel so good,” Rhyne said. “Like, maybe the lights ain’t getting shut out just yet. Maybe there’s an outside chance. We don’t know what Howard Lutnick meant by what he said — but we love that he called bull on it.”

For steelworkers like Rhyne who’ve been trying to make all the noise they can about the mill, the mere fact that someone in the Trump administration noticed Granite City served as a small win.

While Granite City’s mayor, Republican state lawmakers and a Democratic congresswoman have ardently advocated to keep the mill open in recent months, some worried that U.S. Steel leadership and Trump forgot about it.

“We're not asking for no handout. We're not asking for anybody to do anything crazy,” Rhyne said. “We just want a chance, and I'm glad that Howard Lutnick noticed.”

The steelworkers will make their case with a community rally scheduled for 2:30 p.m. Sept. 20 at Civic Park in Granite City. USW International President David McCall is scheduled to speak.

Will Bauer is the Metro East reporter at St. Louis Public Radio.