Steel tariff forces Sev-Rend clipping wire surcharge
Steel tariff forces Sev-Rend clipping wire surcharge
U.S. global trade policy has reached the domestic produce industry’s banding wire.
Sev-Rend Corp., based in Collinsville, IL, announced June 27 that it is increasing by 25 percent the cost of its zinc and copper coated steel banding wire. The increase is effective July 1.
“This is a direct pass through of increasing costs as a result of the Presidential Proclamation on adjusting imports of steel into the United States that was issued on March 8,” the firm indicated. “The proclamation imposed a 25 percent tariff on steel articles effective June 1.”
“Sev-Rend continues to search for a domestic supply of steel clipping wire; however, that potential partner simply does not exist today in the U.S.,” said Greg Petermeyer, general manager. “We will structure the implementation as a line item surcharge on invoices that can easily be removed upon abandonment of the tariff.”
Sev-Rend will continue to closely monitor the changing material dynamics and market conditions.
Now celebrating their 25th year as a packaging innovator, Sev-Rend is a leading supplier of high-performance packaging for Form-Fill-Seal operations.