MMM news for Friday has President Donald Trump invoking the Defense Protection Act against 3M (NYSE:MMM).
Invoking the Defense Protection Act against 3M allows President Trump to secure supplies from the company during a time of crisis. The crisis is the coronavirus from China and Trump wants the N-95 face masks made by the company.
This order will allow the Secretary of Homeland Security to acquire as many of the face masks as required from 3M and its subsidiaries with the help of the Administrator of the Federal Emergency Management Agency.
The order from President Trump comes as 3M continues to sell face maks made in the U.S. to other countries. That includes Canada and Latin America. An MMM news release notes that halting sales to other countries could cause them to stop exporting face masks and other supplies to America.
Another part of the Defense Protection Act against 3M has it importing more of the face masks that it makes in other countries to the U.S. The company notes that it already has an agreement to secure 10 million face masks from its factories in China.
“We hit 3M hard today after seeing what they were doing with their Masks. “P Act” all the way. Big surprise to many in government as to what they were doing – will have a big price to pay!”
MMM stock was down 2.99% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.