US nail manufacturer could move to Mexico to avoid tariffs

Mid-Continent Nail, the leading nail manufacturer in the United States, is resenting the tariffs imposed on steel imports in the United States.

By Notimex Wednesday, June 27, 2018 comments

The company Mid-Continent Nail, the main manufacturer of nails in the United States, said that the tariffs imposed on the import of steel in the United States could force it to close or transfer its production to Mexico.

1Photo Credits: Website CNN Money

The company, based in the Poplar Bluff community of Missouri, is in danger of closing production before Labor Day, unless the Department of Commerce grants it an exclusion of payment of fees, said spokesman, James Glassman.

Glassman warned that Mid-Continent Nail is “on the verge of extinction”, which blamed the tariff of 25% on the import of steel, imposed by President Donald Trump.

Glassman reported that orders for nails fell 50 percent after the company raised its prices to cope with higher steel costs, and that it was forced to lay off 60 of its 500 workers last week.

2Photo Credits: Website Just Good News

He added that the company could move to Mexico, to be able to buy the steel without tariffs, and then export the finished nails to the United States without tariffs, since these rates only apply to raw materials.

“Obviously it’s an option,” Glassman said. “It’s absolutely something that this company does not want to do. He wants to save the work in Poplar Bluff, Missouri, “he said.

3Photo Credits: Website Chicago Tribune

Glassman called President Trump’s trade policy misguided, noting that the company had doubled its workforce since 2013, and prospered despite China’s growing competition.

The US Chamber of Commerce has estimated that 2.6 million jobs are at risk in this country due to President Trump’s commercially protectionist policies.