25% Tariff on Foreign Nails Likely to Drive Up Costs for CMs
On February 8, 2020, the Trump administration imposed new trade tariffs of 25 percent on steel derivative articles (i.e., nails, wire, staples and stampings) imported from all countries except Argentina, Australia, Brazil, Canada, Mexico, and South Korea. Here is a good summary of the new tariffs.
As a result, U.S. nail distributors/suppliers have indicated they have already received notices from their manufacturers of price increases of between 15-40 percent. The ongoing availability of nail production capacity and supply are also a concern to them. This cost increase will be passed on to buyers like component manufacturers.
There is also concern that there may be order size limitations and volatile price increases going forward. Here is an example of a letter from a U.S. nail distributor sent to a component manufacturer last week. It remains to be seen how this may impact staple costs.