Sen. McCaskill to Visit Mo. Nail Manufacturer At Risk Of Closing Because of Tariff Policy That Helps China

POPLAR BLUFF, Mo., June 27, 2018 /PRNewswire/ -- U.S. Senator Claire McCaskill will tour the Poplar Bluff factory of Mid Continent Steel & Wire, Inc., the largest U.S. producer of steel nails, on Friday, the company announced today.

Mid Continent has been the focus of attention lately after the company was forced to reduce its workforce by over 10 percent on June 15 because of soaring costs and canceled sales resulting from Section 232 tariffs that President Trump placed on the wire that Mid Continent uses to produce nails.

By contrast, Mid Continent's competitors in such countries as China and Taiwan do not face these costs, and their nail exports to the U.S. are not covered by Section 232 tariffs.

Mid Continent, which employs about 500 workers, has already been forced to cut 60 jobs. Unless something changes quickly, it may have to cut 200 more in coming weeks and even shut down completely shortly after.

"As a direct result of the tariffs, our orders have plummeted by nearly 50 percent this month," said George Skarich, Mid Continent's Executive Vice President for Sales.  "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.  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."

Sen. McCaskill raised the issue at a Senate hearing last week when questioning Commerce Secretary Wilbur Ross, who has the authority to exclude the raw material used by Mid Continent from the tariff ? and thus save 500 jobs.

"Mid Continent's existence is threatened," Skarich said. "It makes no sense to use tariffs that help China and hurt American workers."

Any members of the press interested in attending Friday's event with Senator McCaskill should contact Elizabeth Heaton for time and location information at 202-445-9858 or [email protected]

SOURCE Mid Continent Steel & Wire, Inc.