Largest U.S. Nail Manufacturer - Screwed By Trump’s Tariffs, May Move To Mexico

[Straw Man]

Largest U.S. Nail Manufacturer Gets Screwed By Trump’s Tariffs, May Move To Mexico

The Mid-Continent Nail plant in Poplar Bluff, Missouri, laid off 60 of its 500 workers last week because of increased steel costs. The company blames the 25% tariff on imported steel. Orders for nails plunged 50% after the company raised its prices to deal with higher steel costs.

The company is in danger of shutting production by Labor Day unless the Commerce Department grants it an exclusion from paying the tariffs, company spokesman James Glassman told CNN’s Poppy Harlow.

Mid-Continent Nail is “on the brink of extinction,” he said.

Glassman said the company might relocate to Mexico, where it could buy the steel without the tariffs — and then export the finished nails back to the United States without tariffs, which only apply to raw materials.

“It’s obviously an option,” said Glassman about moving to Mexico. “It absolutely is something this company does not want to do. It wants to save the jobs in Poplar Bluff, Missouri.”

Mid-Continent Nail had doubled its workforce since 2013 despite increased foreign competition. Now the new steel tariff has forced them to cut their staff by about 12%. Glassman said that Trump’s trade policy is “misguided.”

https://www.redstate.com/jimjamitis/2018/06/26/largest-u.s.-nail-manufacturer-gets-screwed-trumps-tariffs-may-move-mexico/

[Irongrip400]

So steel, that's bringing in about $.08 a pound and was as high as $.12 a pound in 2011 with a low of about $.02 a pound in 2014, is forcing them to move to Mexico? I don't understand it, it sounds like a crybaby throwing a tantrum. I mean, were they threatening to move in 2011 when the housing market was in the toilet and steel was much higher in cost?

[Straw Man]

So steel, that's bringing in about $.08 a pound and was as high as $.12 a pound in 2011 with a low of about $.02 a pound in 2014, is forcing them to move to Mexico? I don't understand it, it sounds like a crybaby throwing a tantrum. I mean, were they threatening to move in 2011 when the housing market was in the toilet and steel was much higher in cost?

Yeah, I'm sure it's just a cry baby throwing a tantrum

that's why they laid off employees after their sales dropped by 50%

cry babies gonna cry

[Board_SHERIF]

Yeah, I'm sure it's just a cry baby throwing a tantrum

that's why they laid off employees after their sales dropped by 50%

cry babies gonna cry

Big deal, what about this ? "Trump tariffs drive $500M investment in a new Ohio steel plant"

[Irongrip400]

Yeah, I'm sure it's just a cry baby throwing a tantrum

that's why they laid off employees after their sales dropped by 50%

cry babies gonna cry

I'd say it was other issues than they had to raise the price because of the tariffs. Like I said, why did they not have these same issues before in 2011 when steel was much higher? Maybe they got greedy and used the tariff excuse as a reason to start price gouging. I've seen certain people not learn from the mistakes made leading up to 2008, and that's a bit scary.

[chaos]

Yeah, I'm sure it's just a cry baby throwing a tantrum

that's why they laid off employees after their sales dropped by 50%

cry babies gonna cry

So there's a 50% less need for nails? People are buying their nails from somewhere. Maybe they just jacked their prices so high their customers decided to buy The Home Depot store brand?

[Straw Man]

Big deal, what about this ? "Trump tariffs drive $500M investment in a new Ohio steel plant"

300 jobs

Woo Hoo !!

[chaos]

300 jobs

Woo Hoo !!

And how many hundreds of residual jobs?

[Moontrane]

https://www.redstate.com/jimjamitis/2018/06/26/largest-u.s.-nail-manufacturer-gets-screwed-trumps-tariffs-may-move-mexico/

I saw what you did with that headline.   

[chaos]

DEACERO S.A. de C.V., based in Monterrey, Mexico, has announced that its DEACERO USA Inc., subsidiary has acquired Mid-Continent Nail Corp.

Company is already owned by a Mexican company. I mean, they would never exaggerate the impact of these tariffs, would they?

[Straw Man]

And how many hundreds of residual jobs?

maybe 15 or 20 for the fast food joints and bars

town only has 3500 people

[Straw Man]

I saw what you did with that headline.   

I took out "gets" from "gets screwed" in order to make it fit

otherwise the word mexico would have been cut off

full title is in the body of the post

what's your point?

[chaos]

I still don't get it since steel prices aren't at their highest prices, not even close. But a few months of tariffs and they suddenly can't operate? I call bullshit.

[Straw Man]

I still don't get it since steel prices aren't at their highest prices, not even close. But a few months of tariffs and they suddenly can't operate? I call bullshit.

there is a 25% tariff on imported steel

they tried to pass it along to their customers and sales dropped immediately

[Coach is Back!]

there is a 25% tariff on imported steel

they tried to pass it along to their customers and sales dropped immediately

You mean kinda like what would happen to a business if the left got their way by raising the minimum wage?

[chaos]

there is a 25% tariff on imported steel

they tried to pass it along to their customers and sales dropped immediately

That's amazing isn't it? Considering steel prices aren't even close to the prices from just a few years ago. Suddenly they have to raise prices and immediately they're impacted and have to cut 60 people. Bullshit. They were trying to price gouge and their customers went somewhere else. It happens.

[Moontrane]

I took out "gets" from "gets screwed" in order to make it fit

otherwise the word mexico would have been cut off

full title is in the body of the post

what's your point?

It's not your modification; it's the use of nail and screwed in the headline.

[Coach is Back!]

https://www.washingtonexaminer.com/washington-secrets/trumps-no-1-deal-maker-jared-kushner-takes-winning-streak-to-wisconsin-for-13-000-jobs

[polychronopolous]

https://www.washingtonexaminer.com/washington-secrets/trumps-no-1-deal-maker-jared-kushner-takes-winning-streak-to-wisconsin-for-13-000-jobs

So he actually ended up securing the deal?

Nice!

[Irongrip400]

That's amazing isn't it? Considering steel prices aren't even close to the prices from just a few years ago. Suddenly they have to raise prices and immediately they're impacted and have to cut 60 people. Bullshit. They were trying to price gouge and their customers went somewhere else. It happens.

This was exactly my point.

[Board_SHERIF]

300 jobs

Woo Hoo !!

To build a $500 million plant it will employ thousands to build it.

[IroNat]

People don't use nails anymore, they use drywall screws.

[Yamcha]