Tariffs threaten U.S. nail maker
A Missouri-based fastener company that promotes its nails as Made-in-USA said it is reeling and facing extinction from a recently imposed 25% tariff on wire.
The company — Mid Continent Nail Corp. of Poplar Bluff, Mo. — hit the national and even international stage this week during a congressional hearing with U.S. Commerce Secretary Wilbur Ross.
The Trump administration announced 25% tariffs on steel and 10% tariffs on aluminum back in March. Mid Continent Nail said it is in danger of going out of business as a result of this action.
The company is one of many seeking an exemption from the tariff.
George Skarich, the company’s executive VP of sales, described his southeastern Missouri company as a U.S. nail manufacturer that is being priced out of the market because of the 25% tariff on the wire used to make the company's nails. “Cheap nail imports from China and other countries don’t face this tariff and are increasing every day," he said. "We need our wire to be excluded from this tariff or we will have to increase the layoffs we’ve already begun. Mid Continent’s existence is threatened.”
Skarich described his company as the "last major U.S. nail manufacturer." However, there are others. For instance. Maze Nails of Peru, Ill., also makes nails in the United States. Maze describes itself as "America's largest manufacturer of specialty nails."
During the hearing, Sen. Claire McCaskill, D-Mo., teed off on the tariffs and its impact on jobs in her district.
“It appears to me that in a chaotic and frankly incompetent manner, you’re picking winners and losers on very technical bases according to all the reporting we have, without a great deal of training, and the regulatory burden is so extreme on small businesses," McCaskill said. "So far, in response to the tariff, they have lost almost half of their business in one month due to price.”
The company has been forced to lay off 60 of their 500 employees as it has idled its sophisticated production facility in Poplar Bluff. More job cuts are expected, she said.
“As Sen. McCaskill has helpfully pointed out time and time again, it makes no sense to use tariffs that help China and hurt American workers," Skarich said. "Wasn’t the goal of these tariffs to Make America Great Again by bringing back good-paying manufacturing jobs?”
According to a report in Bloomberg, Trump’s tariffs have collected more than $775 million so far.
Secretary Ross said during the hearing that the process for seeking exemptions — burdened with some 20,000 exclusion requests on steel duties — is expected to be accelerated. He also defended the tariffs in principle.
“This administration is standing up for American families, American businesses and American workers by taking action to reduce imports that threaten our national security,” he said.
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Editor's Note: The above article has been edited to include the fact that Mid Continent is not the only maker of nails in the U.S.
The company — Mid Continent Nail Corp. of Poplar Bluff, Mo. — hit the national and even international stage this week during a congressional hearing with U.S. Commerce Secretary Wilbur Ross.
The Trump administration announced 25% tariffs on steel and 10% tariffs on aluminum back in March. Mid Continent Nail said it is in danger of going out of business as a result of this action.
The company is one of many seeking an exemption from the tariff.
George Skarich, the company’s executive VP of sales, described his southeastern Missouri company as a U.S. nail manufacturer that is being priced out of the market because of the 25% tariff on the wire used to make the company's nails. “Cheap nail imports from China and other countries don’t face this tariff and are increasing every day," he said. "We need our wire to be excluded from this tariff or we will have to increase the layoffs we’ve already begun. Mid Continent’s existence is threatened.”
Skarich described his company as the "last major U.S. nail manufacturer." However, there are others. For instance. Maze Nails of Peru, Ill., also makes nails in the United States. Maze describes itself as "America's largest manufacturer of specialty nails."
During the hearing, Sen. Claire McCaskill, D-Mo., teed off on the tariffs and its impact on jobs in her district.
“It appears to me that in a chaotic and frankly incompetent manner, you’re picking winners and losers on very technical bases according to all the reporting we have, without a great deal of training, and the regulatory burden is so extreme on small businesses," McCaskill said. "So far, in response to the tariff, they have lost almost half of their business in one month due to price.”
The company has been forced to lay off 60 of their 500 employees as it has idled its sophisticated production facility in Poplar Bluff. More job cuts are expected, she said.
“As Sen. McCaskill has helpfully pointed out time and time again, it makes no sense to use tariffs that help China and hurt American workers," Skarich said. "Wasn’t the goal of these tariffs to Make America Great Again by bringing back good-paying manufacturing jobs?”
According to a report in Bloomberg, Trump’s tariffs have collected more than $775 million so far.
Secretary Ross said during the hearing that the process for seeking exemptions — burdened with some 20,000 exclusion requests on steel duties — is expected to be accelerated. He also defended the tariffs in principle.
“This administration is standing up for American families, American businesses and American workers by taking action to reduce imports that threaten our national security,” he said.
# # #
Editor's Note: The above article has been edited to include the fact that Mid Continent is not the only maker of nails in the U.S.