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Whirlpool loved Trump's tariffs. Now it's struggling

posted 7 years ago by Rorikon (18399)
9 replies | jump to latest

https://money.cnn.com/2018/07/24/news/companies/whirlpool-washing-machines-trump-tariffs/index.html

In January, when Trump announced tariffs on imported washing machines, CEO Marc Bitzer told analysts, "This is, without any doubt, a positive catalyst for Whirlpool."

But the Trump administration didn't stop there. It imposed tariffs on steel and aluminum, sending raw material prices skyrocketing. That has raised costs for Whirlpool by $350 million and squeezed its profit margins. Steel prices in the United States are 60% higher than the rest of the world, Bitzer told analysts on Tuesday.

Now Whirlpool is backtracking on its protectionist cheerleading. The company's reversal demonstrates the unintended consequences tariffs have sowed on manufacturers and their carefully-planned supply chains.

Say it with me guys... #MA... GA... guys...? Where did everyone go?

[–] Frogarama (12942) 7 years ago

If you're gonna do them, roll out tariffs slowly over time, like how minimum wage or emissions restrictions are done. Not imposed in full at once.

[–] Rorikon (18399) 7 years ago

I remember some companies asked for temp. exemption to the tariff for a year so they can build some buildings in the US to adapt to the changes or something like that.

[–] Frogarama (12942) 7 years ago

That's smart and very sly. If I got that exemption, I would stockpile the material(s) at the non-tariff price, and sell it to other U.S. companies for a nice profit, yet still well below the tariff price.

Become the funnel, the middle man. The dealer! Trump would probably appreciate it, if anyone loves taking advantage of a financial loophole, it's him.

[–] halomaniac88 (1736) 7 years ago

trump is not a real successful businessman

[–] Gd5150 (11972) 7 years ago

It’s curious no one in congress seems to be doing anything to stop the tarrifs.

[–] wheelin176 (2056) 7 years ago

My guess is when their constituents start hollering,that's when congress will attend to the issue.

[–] Satan2016 (26234) 7 years ago

Trump's trade war is going to lose Republicans big votes in November. Unless there is a revolt before then.

[–] halomaniac88 (1736) 7 years ago

shit is going to hit the fan

[–] Rorikon (18399) 7 years ago

I'm kind of surprised to hear you say that Satan. But you know poor voters, they'll stick to the base no matter if it hurts them. It'll be an interesting battle to see no less.