Louisiana steelmaker shutters, steel tariffs to blame
After filing for bankruptcy on Monday, Bayou Steel Group laid off around 376 employees ahead of a planned shutdown of its factory in November. In a statement released Tuesday, the company said conditions for the bankruptcy were created by a "severe lack in liquidity."
“This unfortunate situation was created by a severe lack in liquidity at the Company, which resulted in a default with its senior secured lender, and created a situation where the Company could no longer purchase raw materials,” said the company in a released statement.
However, Louisiana Gov. John Bel Edwards released a statement of his own pointing to President Trump's steel tariffs as culpable in the layoffs.
"While Bayou Steel has not given any specific reason for the closure, we know that this company, which uses recycled scrap metal that is largely imported, is particularly vulnerable to tariffs," the governor said. "Louisiana is among the most dependent states on tariffed metals, which is why we continue to be hopeful for a speedy resolution to the uncertainty of the future of tariffs."
The statement didn't go unnoticed by President Trump, about which he quickly responded urging republicans of Louisiana to support anyone but Gov. Edwards for upcoming elections: "Don’t be fooled, John Bel Edwards will NEVER be for us. Early voting has already started!"
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