Remember meForgot password?
    Log in with Twitter

article imageElectrolux puts $250 million investment in U.S. plant on hold

By Karen Graham     Mar 2, 2018 in Business
Sweden's Electrolux, Europe’s largest home appliance maker, said on Friday it would delay a planned $250 million investment in Tennessee after President Donald Trump announced tariffs on imported aluminum and steel.
Electrolux has decided to delay its $250 million investment to expand and modernize its plant in Springfield, Tennessee after President Trump announced he would be imposing tariffs on imported steel and aluminum, Reuters reported on Friday.
"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.
Electrolux buys all the steel it uses in its U.S. products domestically. “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.,” Frykholm said.
White House officials later said some details of Trump's tariffs still needed to be ironed out. The company is waiting to see the final details of the U.S. plans before making a final decision, Frykholm said.
According to Market Watch, Trump's announcement of a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum set to go into effect next week sent the Dow Industrial Average (DJIA) down over 500 points at its worst level, raising fears of a trade war.
After a previous close at $266.10. Electrolux stock has dropped to $255.50, a 3.98 percent drop.
Google Finance
More about Electrolux, plant expansion, Tariffs, Steel, global reaction