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Sunday, January 20, 2019 1:10:30 AM
Steel in the Dumps - The garbage company in our area of Los Angeles, Athens Services, is currently upgrading the large steel dumpsters businesses use.
The old bins were made in America, but the new bins are Hecho en Mexico where the fabricator doesn't have to pay a 20% import tariff on the steel they purchase. The floor of the new Mexican garbage bins is reinforced with more steel than the model being withdrawn because it gave out quickly, and with the tariff the garbage company will receive a higher US scrap price for the old bins.
—— It's like the story from last year, Mid Continent Nail the only nail manufacturer in America, which has laid off 40% of their employees since the steel tariff was imposed. Sen. Claire McCaskill, D-Mo., the representative for the home of Mid Continent got the Treasury to create an appeal process put into place to ask for an exemption from the steel tariff, but they still have no exemption so they'll likely move their nail manufacturing from Missouri to Mexico.
—— The ultimate irony is the stock prices of American steel manufacturers are all down since the 20% steel tariff was imposed, in spite of higher earnings, because no on believes the tariff will last and investors feel the tariff will hurt them in the long run as they'll have fewer domestic customers once the tariffs are lifted.
Steel prices have actually fallen back to pre-tariff prices as domestic demand has slumped !
The old bins were made in America, but the new bins are Hecho en Mexico where the fabricator doesn't have to pay a 20% import tariff on the steel they purchase. The floor of the new Mexican garbage bins is reinforced with more steel than the model being withdrawn because it gave out quickly, and with the tariff the garbage company will receive a higher US scrap price for the old bins.
—— It's like the story from last year, Mid Continent Nail the only nail manufacturer in America, which has laid off 40% of their employees since the steel tariff was imposed. Sen. Claire McCaskill, D-Mo., the representative for the home of Mid Continent got the Treasury to create an appeal process put into place to ask for an exemption from the steel tariff, but they still have no exemption so they'll likely move their nail manufacturing from Missouri to Mexico.
—— The ultimate irony is the stock prices of American steel manufacturers are all down since the 20% steel tariff was imposed, in spite of higher earnings, because no on believes the tariff will last and investors feel the tariff will hurt them in the long run as they'll have fewer domestic customers once the tariffs are lifted.
Steel prices have actually fallen back to pre-tariff prices as domestic demand has slumped !
We've run out of other people's Social Security taxes needed to subsidize our low income tax rates.
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