A Chinese steel company has slashed prices on steel by almost $300 per month to help workers from the US steel industry get back to work.
Steelmaker Wuhan Steel Co said it would offer $300 savings per month, or $1,200, to its US workers to help them pay their rent and buy food, gas and other basic goods.
The offer was announced on the company’s website on Thursday.
Mr Wuhans China unit has been one of the largest steel producers in the US, and was the first to be acquired by the US-based Cargill Group in 2002.
Wuhan’s announcement comes as China and the US are negotiating a trade deal to boost trade between the two countries.
The trade deal could help China reduce its trade surplus with the US and give it a greater say in the global economy.
China has been pushing the US to lower its tariffs on steel exports to boost its domestic industry.
On Thursday, US Secretary of Commerce Wilbur Ross said that the US would not be cutting its tariffs.
“The United States is not cutting our tariffs,” Mr Ross said.
“We are not going to be cutting them.
The US will not be laying off our steelworkers.”
China and the United States have a free trade agreement and it has helped to drive steel prices down.
According to a recent report by the National Association of Manufacturers, the US is expected to trade at $3.5 trillion in goods this year, a 14 per cent decline from 2016.
A US trade deficit with China is expected at $1.1 trillion this year.