When Utah Iron abruptly shuttered its mining operations in Iron County Wednesday, some were quick to point fingers at President Donald Trump, blaming his tariff policies for the closure. But one of the mine’s owners, George Adams, says that narrative is not only wrong — it obscures the real problem.

“They’re not ‘Trump’s tariffs.’ These aren’t tariffs imposed by the U.S. government,” Adams said. “They’re tariffs China puts on anything coming from the U.S., and when they doubled them overnight, we couldn’t absorb the hit.”

While Utah Iron’s press release stated the company employs hundreds, Adams said the actual number was closer to 150 at the mine, with another 50 workers at a port in Long Beach, California, who were also laid off.

But the closure, Adams said, wasn’t caused by any single policy shift, but rather marked the breaking point in a long-standing trade imbalance.

“What Trump’s trying to do is get balance,” he said. “We can’t keep living with these huge trade imbalances. Hopefully this brings everybody to the table and we get equal and fair trade.”

Still, he acknowledged the human cost.

“I’m going to support our president,” he said. “But that doesn’t change the heartbreak for the men and women who lost their jobs. That’s the part that really hurts.”

The mine ships raw iron to China for refining, a business model that has long struggled under steep Chinese tariffs, Adams said.

“Exporting to China has always been hard,” he said. “They make it really difficult. Unless it’s something they desperately need, they put tariffs on everything. Even before this, we were paying a 34% tariff just to get our product in the door.”

In early April, the Trump administration began increasing tariffs on Chinese imports, starting with a 10% baseline and targeting certain categories for higher rates. The goal was to pressure Beijing to address long-standing trade imbalances.

In response, China raised its tariffs on U.S. exports from 34% to 84%, with the change taking effect immediately. The U.S. later escalated its own tariffs to 125% on select Chinese goods.

For Utah Iron, China’s sudden retaliation proved devastating.

“We had ships en route that had to be repositioned,” Adams said. “We had to reroute cargo we’d already paid to move because the new tariffs went into effect instantly.”

With profit margins already tight, the sudden spike in costs made continued operations impossible.

“If the price of iron is $100 a ton and China puts a 34% tariff on it, that’s $34 gone right off the top,” Adams said. “We only make a few dollars a ton in profit. It’s a razor-thin business.”

The company’s press release noted the closure was necessary to give officials an opportunity to “regroup and adjust to current market pressures.”

“We are navigating uncharted waters with unfamiliar and seemingly insurmountable risks,” it stated.

Despite the shutdown, however, Adams said he has no intention of walking away from his investment.

“We’ve invested over $100 million in the past three years building this mine back up,” he said. “We didn’t do that to close it — we did it for the long haul. I promise you the mine will open again.”

The press release also acknowledged officials will continue to work “diligently with strategic partners to find the right solutions.”

For your information:

Understanding the Tariff Conflict

What is a tariff?
A tariff is a tax on imports or exports between sovereign states. Governments use tariffs to protect domestic industries, retaliate against unfair trade practices, or pressure foreign governments into negotiations.

Did Trump cause the tariffs that shut the mine down?
Not directly. The U.S. tariffs announced by the Trump administration targeted Chinese imports—not American exports like iron. The goal was to pressure China into fairer trade by leveraging access to the U.S. consumer market.

China responded by raising tariffs on American exports, including raw materials like iron — but that response was their own decision. Critics argue Trump’s strategy provoked retaliation, while supporters say it was a necessary step to correct long-standing trade imbalances.

Was Trump trying to start a trade war?
Not according to Adams. Trump’s goal, he said, was to correct a longstanding trade imbalance. For decades, China has imposed higher tariffs on U.S. products than the U.S. did on Chinese products.

Why did it hurt this mine so badly and so quickly?
The mine was already operating under tight margins, losing significant profit to existing tariffs. When China nearly doubled its tariff on iron, the business model couldn’t carry the loss. The change was sudden and immediate, hitting shipments already en route.

Photo was taken from Utah Iron website.

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Tariff Fallout: Mine Owner Blames China’s Actions, Not Trump’s, for Shutdown4 min read

Existing Chinese tariffs made business difficult — recent retaliation made it unsustainable.

By Tracie Sullivan, For Iron County Today