After announcing in January a $250 million plant expansion in Springfield, Sweden's Electrolux reported Friday that its plans are now on hold. Reuters first reported that the company, Europe's largest home appliance manufacturer, was delaying its Tennessee investment after President Donald Trump announced Thursday new tariffs on imported aluminum and steel.
Electrolux's investment plans included modernizing and adding 400,000 square feet to the Springfield plant, construction on which was slated to begin later this year.
"Unfortunately, this decision gives foreign appliance manufacturers a cost advantage that is hard to compete against," Electrolux spokesperson Eloise Hale said in a statement to USA TODAY NETWORK - Tennessee.
Hale said the company was still evaluating the tariff announcement, but is so concerned about the potential negative financial impact that it has gone ahead and put the Springfield expansion project on hold until Trump's order is signed and final details are clear.
All of the carbon steel the company uses in its U.S. manufacturing plants comes from American steel mills, Hale said.
In a statement to Reuters, Daniel Frykholm, another company spokesperson, said executives believed the tariffs could "cause a pretty significant increase in the price of steel on the U.S. market," and "could damage the overall competitiveness of (Electrolux's) operations in the U.S."
The interactions within the US economy are complex.
As I said a couple days ago, there are more people that use steel than people that make steel.
Targeting a small part of the US economy with a tariff that is liked mostly (if not only) by Pres Trump's base, can and will have wide-ranging effects.
This tariff has clear signs that it was not thought through at all, and that it was more of a knee-jerk reaction than a planned policy.
What are the intended effects of the tariff? Are the effects being caused by the tariff within those intended effects?
According to rightoecentre this is the "good news" libs despise
But he isn't here
Cause he is just an inflamed -----
How did taxing the inputs to manufacturing in the USA seem like a good idea?
Create a few steel jobs and kill thousands of manufacturing jobs.
The Dotard is almost as big an idiot as his voters.
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