Job layoffs and plant closure blaming Trump’s tariffs

A South Carolina television-making company says it might be forced to shut down a plant and lay off its employees because of the ongoing trade war between the U.S. and China....

A South Carolina television-making company says it might be forced to shut down a plant and lay off its employees because of the ongoing trade war between the U.S. and China.

The Element Electronics plant in Winnsboro, one of the biggest employers in Fairfield County, said unless its parts are removed from the tariff list, it will be forced to close down and layoff 126 people.

President Donald Trump has beefed up his war with China over trade, threatening to more than double tariffs on $200 billion of Chinese goods. A 25 percent tariff on $16 billion in Chinese imports is set to go into effect later this month.

The new tariffs will take effect on Aug. 23 and will impact 279 product lines, down from the original 284 that were proposed on June 15, the U.S. Trade Representative’s office said. Products to be impacted include electronics, plastics and railway freight cars.

“As we are the only USA assembler of televisions, we believe the inclusion of our parts on the list of affected products is accidental and resolvable,” the company posted on Facebook. “Element is working hard to have our parts removed from the tariff list and we remain hopeful that the closure of our South Carolina factory will be avoided.”

A letter the company sent to the South Carolina Department of Employment, obtained by The State newspaper, details the company’s rationale over the closure.

“The layoff and closure is a result of the new tariffs that were recently and unexpectedly imposed on many goods imported from China, including the key television components used in our assembly operations in Winnsboro,” the company wrote, adding it hoped the closure would be temporary and they could reopen in “three to six months.”

In the letter, the company said the layoffs would start in October.

The State reports the company’s closure is just the latest to hit the poor and troubled Fairfield County. The newspaper says it comes after a nuclear power plant project was abandoned, a textile milled closed and a Walmart, the largest employer in the county, closed.

Source: Christal Hayes, USA TODAY

Photo Credit: Gadgets Now

Photo Credit: Twitter

Categories
Business & Money
No Comment

Leave a Reply

*

*

RELATED BY