Monday, June 25, 2018

Major Nail Company on the Edge of Bankruptcy Because of Trump Steel Tariffs

President Trump’s tariff on steel imports that took effect June 1 has caused a southeast Missouri nail manufacturer to lose about 50% of its business in two weeks. Mid Continent Nail Corporation in Poplar Bluff – the remaining major nail producer in the country – has had to take drastic measures to make ends meet. The company employing 500 people earlier this month has laid off 60 temporary workers. It could slash 200 more jobs by the end of July and be out of business around Labor Day, reports

Mid Continent is owned by Mexico-based Deacero. The parent company produces steel and ships the material to its Poplar Bluff plant. Spokesperson Elizabeth Heaton tells Missourinet Deacero is being hit with the 25% tariff for importing steel to its own company.

The company has requested an exemption from the Commerce Department but the Department has a backlog of more than 20,000 exemption requests.

“Something would have to happen very fast, within days in order for us to know that things were going to improve. We’re hoping that this could get pushed through very quickly,” Heaton says.

The company has also requested a meeting with U.S. Commerce Secretary Wilbur Ross, Heaton says.

“There are only about 15 of these companies left and Mid Continent produces about 50% of the nails out of those 15. If you could imagine, if it were to go out of business and that is of course worse case scenario, we want to do everything that we can to make sure that does not happen, that would be a huge blow to that segment of the industry. It’s a big deal, not just for Missouri and for the economy there, but for the whole industry.”


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