Utah Iron and Operations Suspension
On April 7, 2025, Utah Iron announced that it would be suspending its operations. The company’s press release stated that “significant changes in global markets have created an unusual and strenuous amount of uncertainty for buyers and sellers.”[1] One of the largest employers in Iron County, Utah Iron’s operations support over 175 full-time jobs and at least 323 indirect or induced jobs.[2] These jobs yielded more than $20 million in annual household earnings.[3]
Utah Iron indicated that this suspension is planned to be temporary, stating they hope to “regroup and adjust to current market pressures.”[4]
The uncertainty in global markets that led to Utah Iron’s closure is largely due to a rapidly changing tariff environment under the current presidential administration. Utah Iron primarily exported its concentrated iron ore to Chinese customers.[5] Steel ( which is principally composed of iron) and Chinese products were among the first goods subject to the presidential administration’s tariffs beginning in February. As of June 4, 2025, the American tariff rate on imported steel and aluminum was 50% for all countries except the UK, which has a 25% rate due to prior negotiations.[6]
Tariffs by the Numbers
China increased its retaliatory tariff rate to 34% on all U.S. goods three days before Utah Iron’s announcement. Two days after Utah Iron suspended operations, that rate increased to 84%. China’s tariff rate on all United States imports jumped to 125% between April 11 and May 12, after a series of tit-for-tat tariff increases between the two countries.[7] The U.S. tariff rate for Chinese goods increased to 145% during this period.
After negotiations, the U.S. tariff rate on China was reduced to 30%, and the Chinese rate was lowered to 10% on May 12.[8] On May 28, a federal trade court ruled that the president exceeded his executive power with the reciprocal tariffs announced in April, but an appeals court put the decision on hold the following day.[9] Most recently, the president announced a new trade framework with China, effective June 12, which resulted in a 55% tariff on Chinese imports.[10] The Chinese tariff rate on American imports will hold at 10%.[11]
Note: The Chinese tariffs in February and March only affected certain U.S. imports, including agricultural products, natural gas, and farm equipment. In April, the tariffs applied broadly to most U.S. imports after President Trump raised tariffs on Chinese imports to 54%. Steel and aluminum tariffs were stacked on top of other general tariff rates until an executive order on April 29th. The U.S. rates affect most Chinese goods, but certain products have been exempted periodically as the administration’s policies evolve.
Source: Tax Foundation, Peterson Institute for International Economics, New York Times.
How Tariffs Work
For Chinese manufacturers that source from U.S. mines, tariffs require businesses to pay a 10% tax to the Chinese government on goods imported from the United States. New tariff costs may prompt Chinese companies to pause operations or seek new, non-U.S. iron suppliers. At the same time, U.S. businesses that import products from Chinese companies are required to pay a 30% tax to the U.S. government. This could reduce demand for Chinese steel, which in turn may decrease demand for U.S. iron, as U.S. companies seek new trading partners.
Tariffs and Uncertainty
The Trump administration’s tariff policies have changed as often as daily or weekly since February, not to mention the removal and reinstatement by the courts. This level of economic uncertainty causes businesses like Utah Iron and their foreign trading partners to struggle to make decisions on how much to produce or trade. Utah Iron is just one example of how prolonged national and international economic uncertainty affects local economies and employees.
Read more about iron mining in Iron County here: Iron Impact: How Iron Forged Utah’s Iron County
[1] Utah Iron Press Release on April 9, 2025
[2] Utah Foundation analysis of Utah Iron data
[3] Ibid.
[4] Utah Iron Press Release on April 9, 2025
[5] Richards, J., 2025, “Citing market uncertainty, Utah Iron shuts down mining operations in Iron County,” St. George News, https://www.stgeorgeutah.com/news/citing-market-uncertainty-utah-iron-shuts-down-mining-operations-in-iron-county/article_f7f01588-79ae-4fcd-af01-9437d37355f2.html
[6] The President of the United States of America, “Adjusting Imports of Aluminum and Steel Into the United States,”
[7] York, E., and Durante, A., 2025, “Trump Tariffs: Tracking the Economic Impact of the Trump Trade War,” Tax Foundation, https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/
[8] Ibid.
[9] Kurtzleben, K., Horsley, S., and Calamur, K., 2025, “Federal court keeps Trump tariffs in place — for now,” National Public Radio, https://www.npr.org/2025/05/28/g-s1-69479/federal-trade-court-trump-tariffs-emergency-powers-law
[10] Mason, J., Smout, A., and Chiacu, D., 2025, “Deal to get US-China trade truce back on track is done, Trump says,” Reuters, https://www.reuters.com/world/china/us-china-trade-talks-resume-second-day-2025-06-10/
[11] Ibid.