Swedish Company Retaliates To Trump’s Steel Tariffs By Killing $250 Million U.S. Investment

981

The international trade war has begun, and Donald Trump has no one to blame but himself.

Just a day after Trump announced he would impose new tariffs on steel and aluminum imports, Swedish home appliance manufacturer Electrolux said it would indefinitely delay a $250 million investment that had been planned for an existing plant in Springfield, Tennessee.

Electrolux spokesman Daniel Frykholm told Reuters:

“We are putting it on hold. We believe that tariffs could cause a pretty significant increase in the price of steel on the U.S. market.

“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 U.S.”

Ironically, Electrolux buys all of the steel it uses in the United States from American sources.

Trump has been complaining about unfair trade practices in the steel and aluminum sector, and has been especially critical of China. However, China is not one of the top 10 importers of steel to the United States. Instead, the new tariffs will most impact Canada and Brazil, both of whom are among the staunchest allies America has in the world.

Alcoa, one of the world’s largest producers of aluminum, said the new tariffs make no sense and that certain trading partners should be shielded from the penalty:

“We believe vital trading partners, including Canada, should be exempt from any tariff on aluminum. The aluminum industry has an integrated supply chain and actions should not penalize those that abide by the rules. We will continue to work on solutions that create a level playing field and address Chinese overcapacity.”

Rather than address those concerns and exempt our neighbors to the north, Trump merely tweeted out this:

Tired of all the “winning” yet, America?

Note to our readers: Please share/tweet our articles. Trump supporting trolls targeted our site’s account and reported it en masse, without cause. This triggered a seemingly automatic suspension. Twitter support has failed to address this issue. Thank you!


Featured Image Via Wikimedia Commons/CC BY-SA 4.0