Whirlpool's Not So Swell Adventures With The Donald's Tariff Spin Cycles

Last January, the Trump administration imposed a penalty on Americans who buy foreign-made washers. The administration argued that the need to protect our domestic washer makers from competition required the imposition, for a period of three years, of a 20 percent duty on the first 1.2 million imported washing machines each year and a 50 percent duty on quantities above that threshold. Whirlpool loved the idea of getting a leg up on two of its most fierce competitors and increasingly consumer darlings

Here’s the thing: When you cheer for protectionism, you never know when you might become the victim of the next round of consumer-punishing tariffs. That’s what happened to Whirlpool, which is now a victim of the 25 percent steel tariffs imposed by the administration to protect the steel industry from foreign competition.

Meanwhile, appliance-repair businesses are making a killing as consumers put off the purchase of new appliances in favor of the expensive (but relatively cheaper) repairs they wouldn’t have purchased in a not-so-long-ago pre-tariff past. Poor protect-me-but-not-thee Whirlpool; this sad turn of events has forced the company to reconsider many of its hopes for expansion.

https://spectator.org/tariffs-stuck-on-the-spin-cycle/

 

 

 

 

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.