Trump Tariff Fallout Claims Its First Victim
Three cheers for all the Trump supporters in Tennessee! This one is on you.
The Swedish appliance company, Electrolux, is the largest appliance maker in Europe. They had planned to invest $250 million in Tennessee.
Jobs! Jobs! Jobs!
But, alas, notice I said they had planned that investment.
According to Business Insider, on Friday, the company announced that something had changed.
Gee… I wonder what it was?
Sweden’s Electrolux, Europe’s largest home appliance maker, said on Friday it would delay a planned $250 million investment in Tennessee, after US President Donald Trump announced tariffs on imported aluminum and steel.
“We are putting it on hold. We believe that tariffs could cause a pretty significant increase in the price of steel on the US market,” Electrolux spokesman Daniel Frykholm said.
The company buys their steel domestically, so what’s the problem?
“So this is not the possibility of tariffs directly impacting our costs, but rather the impact it could have on the market and that it could damage the overall competitiveness of our operations in the US,” Frykholm said.
In other words, steel and aluminum manufactured in the U.S. is expected to see a price increase, as well, and no sane company is going to commit to something that will prove to be fruitless and unprofitable.
Trump’s administration are still working through the details of the planned trade war, but this is just the first casualty.
Electrolux made the announcement in January that they’d be pouring that $250 million into expanding their business in Springfield, Tennessee, but just as quickly as that community was given reason to celebrate, it has been snatched away.
For those Trump supporters in the area that made this disappointment possible, while their family and friends may not have those jobs, they at least have their red MAGA caps to stare at, so that’s something, right?