New Trump tariffs may force Moog to lay off workers
Mon, Jul 2, 2018, 08:50
The 25 percent import tax could push the synthesiser company outside the US.
The US tariff on Chinese goods is threatening jobs at the Moog synthesiser company.
The new 25 percent import tax, which takes effect on July 6th, will drastically increase the price of circuit boards and other components built in China. Moog says the new measures have the "very real potential of forcing us to lay off workers and could (in a worst case scenario) require us to move some, if not all, of our manufacturing overseas."
Although they source boards from US suppliers "whenever possible, paying up to 30 percent over the price of the same circuit boards made overseas," roughly half of the raw components come from China. They have asked supporters to petition elected congressional representatives in North Carolina, the state where Moog's operations are located. You can find a template letter here.
Moog is currently home to 100 employee-owners and has been in operation for over 60 years. The new import tax was announced back in May as part of an effort by the Trump White House to reduce a $337 billion trade deficit with China.