GARY, INDIANA - JUNE 20: A sign is posted at the entrance of United States Steel's (USS) Gary Works facility on June 20, 2019 in Gary, Indiana. USS recently announced that it would temporarily shut down a blast furnace at the facility, another at a USS facility near Detroit and idle a third plant in Europe. The moves come as falling steel prices and weakening demand threaten the industry.  Less than one year ago President Donald Trump visited a USS facility in Granite City, Illinois as it was being brought back online and credited his tariffs on steel imported from China for creating the favorable conditions for the U.S. steel industry.   (Photo by Scott Olson/Getty Images)
Scott Olson/Getty Images
GARY, INDIANA - JUNE 20: A sign is posted at the entrance of United States Steel's (USS) Gary Works facility on June 20, 2019 in Gary, Indiana. USS recently announced that it would temporarily shut down a blast furnace at the facility, another at a USS facility near Detroit and idle a third plant in Europe. The moves come as falling steel prices and weakening demand threaten the industry. Less than one year ago President Donald Trump visited a USS facility in Granite City, Illinois as it was being brought back online and credited his tariffs on steel imported from China for creating the favorable conditions for the U.S. steel industry. (Photo by Scott Olson/Getty Images)
Now playing
02:00
US Steel announces temporary layoffs
President Donald Trump shakes hands with Chinese Vice Premier Liu He, after signing a trade agreement in the East Room of the White House, Wednesday, Jan. 15, 2020, in Washington. (AP Photo/Evan Vucci)
Evan Vucci/AP
President Donald Trump shakes hands with Chinese Vice Premier Liu He, after signing a trade agreement in the East Room of the White House, Wednesday, Jan. 15, 2020, in Washington. (AP Photo/Evan Vucci)
Now playing
01:43
The trade war with China is far from over
NEW YORK, NEW YORK - NOVEMBER 12: President Donald Trump delivers a speech at the Economic Club Of New York in the Grand Ballroom of the Midtown Hilton Hotel on November 12, 2019 in New York City. (Photo by Steven Ferdman/WireImage)
Steven Ferdman/WireImage/WireImage
NEW YORK, NEW YORK - NOVEMBER 12: President Donald Trump delivers a speech at the Economic Club Of New York in the Grand Ballroom of the Midtown Hilton Hotel on November 12, 2019 in New York City. (Photo by Steven Ferdman/WireImage)
Now playing
02:50
The Trump economy is good for his reelection. Will trade stand in the way?
CNN
Now playing
02:34
IMF chief: Trade war could cost world economy $700B
U.S. President Donald Trump meets NATO Secretary General, Jens Stoltenberg at Winfield House in London, Tuesday, Dec. 3, 2019. US President Donald Trump will join other NATO heads of state at Buckingham Palace in London on Tuesday to mark the NATO Alliance's 70th birthday. (AP Photo/Evan Vucci)
Evan Vucci/AP
U.S. President Donald Trump meets NATO Secretary General, Jens Stoltenberg at Winfield House in London, Tuesday, Dec. 3, 2019. US President Donald Trump will join other NATO heads of state at Buckingham Palace in London on Tuesday to mark the NATO Alliance's 70th birthday. (AP Photo/Evan Vucci)
Now playing
02:51
'Tariff Man' Trump escalates trade tensions
trump macron nato comments response sot vpx_00004001.jpg
trump macron nato comments response sot vpx_00004001.jpg
Now playing
00:52
Trump: I'd wait after 2020 election to strike China deal
CNN
Now playing
01:58
Scaramucci on trade: China wants Trump in power
Container trucks arrive at the Port of Long Beach on August 23, 2019 in Long Beach, California. - President Donald Trump hit back at China on August 23, 2019, in their mounting trade war, raising existing and planned tariffs in retaliation for Beijing's announcement earlier in the day of new duties on American goods. (Photo by Frederic J. BROWN / AFP)        (Photo credit should read FREDERIC J. BROWN/AFP/Getty Images)
FREDERIC J. BROWN/AFP/Getty Images
Container trucks arrive at the Port of Long Beach on August 23, 2019 in Long Beach, California. - President Donald Trump hit back at China on August 23, 2019, in their mounting trade war, raising existing and planned tariffs in retaliation for Beijing's announcement earlier in the day of new duties on American goods. (Photo by Frederic J. BROWN / AFP) (Photo credit should read FREDERIC J. BROWN/AFP/Getty Images)
Now playing
01:21
China waives tariffs on some US goods
Photo Illustration: CNNMoney/Getty Images/Shutterstock
Now playing
02:37
The trade war's latest victim: Manufacturing
CNN
Now playing
02:26
Trump trade adviser defends China tariffs: They're working
Getty Images
Now playing
02:04
Why you'll feel the latest round of tariffs
Now playing
02:08
This is what a trade war looks like
Getty Images
Now playing
01:42
This is the worst case scenario for the US-China trade war
A staff member of Huawei uses her mobile phone at the Huawei Digital Transformation Showcase in Shenzhen, China's Guangdong province on March 6, 2019. - Chinese telecom giant Huawei insisted on March 6 its products feature no security "backdoors" for the government, as the normally secretive company gave foreign media a peek inside its state-of-the-art facilities. (Photo by WANG ZHAO / AFP)        (Photo credit should read WANG ZHAO/AFP/Getty Images)
WANG ZHAO/AFP/Getty Images
A staff member of Huawei uses her mobile phone at the Huawei Digital Transformation Showcase in Shenzhen, China's Guangdong province on March 6, 2019. - Chinese telecom giant Huawei insisted on March 6 its products feature no security "backdoors" for the government, as the normally secretive company gave foreign media a peek inside its state-of-the-art facilities. (Photo by WANG ZHAO / AFP) (Photo credit should read WANG ZHAO/AFP/Getty Images)
Now playing
01:29
What blacklisting Huawei means for the US-China trade war
shutterstock/cnnmoney
Now playing
01:44
You'll pay more for these, thanks to tariffs
(CNN Business) —  

US Steel is losing money again.

The steelmarker reported its first loss since early 2017, about a year before the Trump administration imposed 25% tariffs on steel imports in 2018. Those tariffs were designed to help reduce competition for the domestic steel industry and allow companies to add jobs and production.

The tariffs did give steel prices a brief spike and prompted some steel companies, including US Steel, to bring shuttered American mills back on line.

But the increased production, along with a drop in demand from steel customers, resulted in prices falling back. US Steel has shut some of its blast furnaces and laid off staff, citing the weaker market conditions.

And late Thursday it reported an operating loss of $35 million in the quarter.

“While market headwinds persist, we continue to focus on what we can control, including …reducing fixed costs,” said CEO David Burritt.

That reduction in fixed costs included setting a 2020 capital spending budget at $950 million, well below the $1.65 billion that had been expected by analysts.

“We view CapEx conservatism to be prudent given existing…realities,” said Philip Gibbs, a steel analyst with KeyBanc Capital Markets, in a note to clients.

The results were better than Wall Street anticipated, with sales greater than expected and a smaller-than-forecast loss.

Shares of US Steel (X), which are down 37% so far this year, were up 8% in early trading Friday in the wake of the report.

Other US steelmakers, incuding industry leader Nucor (NUE), AK Steel (AKS) and Steel Dynamics (STLD), have continued to post operating profits in the face of the downturn, but all are reporting sharply lower earnings than a year ago.