Posted on 03/02/2018 12:38:52 PM PST by nickcarraway
Sweden’s Electrolux (ELUXb.ST), Europe’s largest home appliance maker, said on Friday it would delay a planned $250 million investment in Tennessee, after U.S. President Donald Trump announced tariffs on imported aluminum and steel.
On Thursday, Trump said the duties — 25 percent on steel imports and 10 percent on aluminum — would be formally announced next week, although White House officials later said some details still needed to be ironed out.
“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,” Electrolux spokesman Daniel Frykholm said.
(Excerpt) Read more at reuters.com ...
Electrolux has chosen to stop investing in a domestic business that would have capitalized on less steel imports.
It will level the playing field. I’m sure Electrolux will come back. There’s the new tax package.
It’s no real secret that Euro parent corporations discount raw material to their foreign assets. Some provide material to their US shops at actual “cost to produce” in the home country. Aluminum is one of them that I am familiar with.
As I was writing my comment, I wondered if some of this might be a factor. I appreciate the mention.
Everyone just does not seem to understand as American steel and aluminum begins mass reproduction that the price of steel will come down with normal competition. All things will even out in time and we must cut China out. We need to produce our own steel to insure we have steel in case of war. You can bet no matter what kind of war, China will screw us.
translation: Hey, Mr. Trump, time for a 48% tariff on Swedish vacuum cleaners.
Ya think?
We need to produce our own steel to insure we have steel in case of war
Exactly
Why should it? All it has to do is come in under the artificially inflated cost of foreign steel. It could well go up.
Reuters people, Reuters.
Any foreign company investing in the US is going to recalculate spreadsheets given a new tax, in this case, an import tax.
But Reuters needs to play up any recalculation into a negative, a ‘delay’.
Markets are so quick to adjust to changes in source supply of raw materials. I’ve lost count of the number of people who have lost everything based on an overreaction to changes in source supply.
Watch how fast American manufacturers respond with new source suppliers, especially domestic suppliers.
What was Trump thinking?
Oven, and the washer/dryer combo, iirc.
When they had a hospitality business, they loved the vacuums.
Back that was then, and this is now.
My great aunt down in New Orleans had a Servel gas powered refrigerator which was really made by Electrolux.
That thing was 50 years old and still going like a champ when she passed it to her daughter for their cabin. The only electricity was for the interior light and that may have been battery powered.
We don’t need your crap anyway. Cee ya!
He might be thinking this is a way to get the other countries to do what he wants but look at the reaction. He needs to try private communication instead of very public.
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