Nailed by Steel Tariffs: Trump protectionism is driving a Missouri company to the brink.

Wall Street Journal ^ | September 9, 2018

[reaganaut1]

When President Trump promised to make America great again, the employees at Mid Continent Nail in Missouri probably didn’t expect he would put them out of work. But the steel tariffs imposed in June have the company hanging by a thread.

Mid Continent is the largest nail manufacturer in the U.S. and has been in Missouri for more than 25 years. It had 500 employees at its Popular Bluff plant and was the second largest employer in the small town before the Trump tariffs hit.

The trouble for Mid Continent is that foreign producers making nails abroad use low-price steel and export their production to the U.S. They can offer better prices than their U.S. rival because, as Chris Pratt, operations general manager for the plant, explained in a Journal op-ed last month, the tariffs pushed costs up “overnight” and made the company uncompetitive. “Orders dropped 70% in two weeks, and our workforce shrank from 500 employees to 370,” he wrote.

Mid Continent is seeking a tariff exemption from the Commerce Department on grounds that it can’t find enough of the steel wire it needs in the U.S. Nucor Corporation, a U.S. steelmaker that is reaping profits from the tariffs, objected to Mid Continent’s request and said it could supply the steel wire. Mid-South Wire Company said the same. But last week CNN Money reported that Mr. “Pratt said that neither company on its own could supply enough raw material.”

[VideoDoctor]

Frankly, this is short term pain for long term gain.

You're right as rain on that.

There is a shortage of that mentality simply because the whiners cannot put America FIRST!

[bigbob]

They first trotted this story out in June, and the fact that they’re still doing so must mean it’s the only example they’ve been able to find in 3 months.

I suspect the problems at Mid Continent go deeper than steel prices.

[bigbob]

“Mid Continent Steel & Wire roots date back to 1952 when our parent
company founder, Don Cesar M. Gutierrez started a small wire shop in
Monterrey, Mexico. He started small as all entrepreneurs do, supplying
handmade chain link fence using second hand wire he purchased from
the U.S. This was merely the beginning of the journey of our parent
company, Deacero.

The origins of the name reflect the rich history of our subsidiary Mid
Continent Nail Corp with a presence in Missouri for over 25 years, which
joined the Deacero family in 2012.”

They also make bump-fire (nail) guns...

[central_va]

The WSJ is really digging to find negative stories about the tariff LOL! What globalist losers.

What Free Traitors™ want you to believe is that the supply function is static and no new domestic suppliers will EVER come on line. Despite their best efforts brand new factories are still being built in the USA all the time. Not as many as are closed mind you but the situation is dynamic and not static. With more domestic supply will mean pressure to reduce prices.

The mental midgets we lovingly call Free Traitors are some of the stupidest people on earth.

[RWGinger]

Actually the number of people employed full time is at a near all time high and has been increasing every month under Trump

not even counting part time or seasonal

[central_va]

Mid Continent is seeking a tariff exemption from the Commerce Department on grounds that it can’t find enough of the steel wire it needs in the U.S. Nucor Corporation, a U.S. steelmaker that is reaping profits from the tariffs,

The situation is NOT static-it's DYNAMIC. More domestic supply will come on line. Give it a few months. Believe in the laws of supply and demand.

[central_va]

is that it hurts the majority in order to help a minority.

Only if you stupidly consider the US worker the minority! Then you are right. What imbecilic comment.

[Zhang Fei]

[China taxes American soybeans, which are not high value-added.]

---

Only in retaliation, because at $12b of exports to China, it wasn’t just the biggest single agricultural crop, it was the majority of $20b of US ag exports to China. It’s not only a vital feed crop contributing to the price of pork, the principal meat there - soybeans are used in soy sauce, the major condiment, as well as soy milk and tofu, also major food staples. Bottom line is that this will cause food inflation - already a major issue there. China has a fairly rational tariff regimen, from a national interest standpoint. It imports low value-added items tariff-free, and tariffs high value-added items to encourage domestic and foreign companies to set up shop there.

[kabar]

What she we do about China and others dumping steel in the US? Let them totally destroy our domestic production?

[central_va]

So production capacity never changes?

[DoughtyOne]

So Europe agreeing to zero tariffs hurt the majority of us?

Thanks for your help in letting us understand all of this.

/s

[VRWCarea51]

Next up on the Whine-a-thon will be agricorps. bitching because they can’t find enough Illegal Labor to pick their lettuce, pluck chickens or Rape and Murder our Women.

If you can’t make a buck doing what you’re doing, Do SOMETHING Different. Plant a different crop that doesn’t require a whole semi full of Illegals to harvest it.

The Market will sort itself out. Make the Trade far and let people decide what they will buy and how much they will pay.

[Cowboy Bob]

Have you looked at country of origin information at your local Home Depot or Lowes recently?

Does the tariff have a different impact depending on whether it is raw steel of a finished product?

[100American]

On average the Boomers exit the workforce at the rate of 10,000 per day

As to the “wages appear not to be rising” I am not sure where you are looking, everything I see on the professional viewpoint is that companies are struggling to find workers and wages are rising as a necessity. People are receiving multiple job offers and the opportunity versus local availability is real.

Forget what the MSM spews, I make it my business to know and it is important in consulting to companies who are transforming to meet the increased demand in some areas or industries, but across the board things have shifted big time in the positive

So unless you have got better responses than “seem to be” I am going to set your post aside as speculative at best

[heights]

The WSJ would bring back child labor if it could.

[dangus]

>> As to the “wages appear not to be rising” I am not sure where you are looking, everything I see on the professional viewpoint is that companies are struggling to find workers and wages are rising as a necessity. <<

Uh... BLS data shows wages perfectly flat as of LAST MONTH’s data, adjusted for inflation. This month showed a 0.35% rise, BEFORE the inflation is known. That’ll probably show some real wage growth.

That’s not to say the Trump economy is failing: this lack of wage growth is because the workforce is accomodating a BOOM of 2.4 million new workers in the past year, all of whom probably earn below the median. Once the number of employees stabilizes, you’ll probably see wage growth. Until then, there are tens of thousands of employers offering minimum wage in markets where the cost of living is several times that, complaining they can’t find American workers.

[ryderann]

“Sounds like the problem is letting in the cheap foreign-produced nails”

Imports should meet our specs. If they can’t come up to our standards they shouldn’t be allowed in.

[central_va]

There is no shortage of US workers. There is only a wage shortage.

Industry and employers have been in the wage driver seat for so long they forgot how to treat workers sellers market.

[100American]

And for those offering Minimum wage the challenges will continue as people will not take those positions and the numbers will rise.

[confederatecarpetbag]

Oh please. If this comment were true, then you need to explain to the rest of us why the Constitutional framers specifically included tariffs as the ONLY means of generating revenue. I’ll trust the wisdom of the founders over the nattering of globalists who insist tariffs are bad - while ignoring the devastating import tariffs imposed on U.S. companies nigh these past four decades.