Poplar Bluff, Missouri-based Mid-Continent Nail plant laid off 60 workers last week as steel tariffs affected this household name. By the looks of it, the nail-maker might contemplate a move to Mexico in a move of self-preservation.
If the US Department of Labor does not grant the plant an exclusion from tariffs, Mid-Continent might shut shop by Labor Day, according to a CNN report. The 25% tariff imposed on imported steel, have heavily offset any profits. The hike also prompted the nail maker to ramp up its prices – and orders fell as much as 50%.
Since Mexico does not impose tariffs on raw materials, one of the options the veteran company might consider is moving its production across the border. They can then import the finished product back to the US.
The Trump job cuts have arrived
According to the Chamber of Commerce, about 2.6 million people might lose their jobs in line with the new trade policies under President Trump – with Moody’s estimating at least 700,000 jobs to be affected by next summer with the tariff stance alone.
Ironically, the Mid-Continent plant is located in the part of Missouri where 80% votes went to President Trump.
While there are fears of a trade war, Bank of America Merrill Lynch economist Michelle Meyer feels “The probability of a full-blown trade war is low but the risks are rising.” However, Meyer mentioned his fears that this could lead to massive global trade confrontation pushing the US and the rest of the world “to the brink of a recession.”
Canada, Mexico and the European Union have already retaliated on the tariff impositions by Trump. As the new rates on China come into effect after the first week of July, fears of a possible trade war have started affecting the Wall Street. On Monday, Dow shed at least 300 points – and that’s nine sliding days in a row.
Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared
Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million
With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard