Swedish home appliances manufacturer AB Electrolux delayed a planned $250 million investment to modernize its Springfield, Tenn., plant after President Donald Trump proposed tariffs on imported steel and aluminum, Reuters reported March 2.
The company buys its steel in the U.S. but is monitoring the impact of the tariffs on the market and the overall competitiveness of its operations in the U.S., Electrolux spokesman Daniel Frykholm told Reuters.
The tariffs are not expected to have a direct impact on Electrolux's costs, but they could impact the market and in turn have an adverse impact on business in the U.S., Frykholm added.
Trump announced March 1 that the U.S. will impose tariffs of 25% on steel imports and 10% on aluminum imports.
"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," Frykholm added.
