The largest nail producer in the US, Missouri-based Mid Continent Nail Corporation, said it could move to Mexico to avoid going out of business, following Trump’s 25 percent import tariff on steel imports from several countries, including Mexico.
The company imports Mexican steel to produce nails and other wire products. According to CNN, the company laid off 60 out of 500 workers last week as a result of increased steel costs.
A company’s spokesman said it would be easier for Mid Continent to relocate to Mexico, buy local steel, and the export the finished nails back to the US with no tariffs.
In a press release announcing an upcoming visit by Senator Claire McCaskill, George Skarich, Mid Continent's Executive Vice President for Sales, said that orders have plummeted by nearly 50 percent in June as a direct result of the tariffs.
“We've got customers that have been with us for decades who can't pay 20 percent more for the same product or they'd be in the same position we are right now,” Skarich said. “These are companies that feel strongly about buying American made nails, but can't afford to do that right now, so instead they're forced to buy imports from China or another foreign country that doesn't face this tariff.”