It was reported last year that Samsung was thinking about setting up a new plant in the United States to manufacture appliances. The company was believed to be responding to growing protectionism in the United States after President Donald Trump took office.
Samsung confirmed in June last year that it’s going to invest $380 million in the state of South Carolina for its new plant. The factory will be used to manufacture washing machines and other appliances. Samsung set up shop at a former Caterpillar plant in the town of Newberry.
The company has now expressed concerns and the persistent threat of strong tariffs on washing machines will adversely affect the job-creating potential of its $380 million investment.
Not letting this go without a fight
It was one of President Trump’s campaign promises to impose strict tariffs on products manufactured outside the United States for sale in the country. The move is meant to push manufacturers to set up plants in the country and create new jobs.
Samsung’s investment in South Carolina was going to create almost 1,000 new industrial jobs. An executive recently said that the factory is going to begin operations later this month.
US-based Whirlpool has filed a safeguard petition with the US International Trade Commission and recommended a 50 percent tariff rate on large residential washing machines built by Samsung. Samsung has now categorically said that any tariff is going to harm job creation at its new South Carolina factory.
The company still needs to import some parts for the machines that it will manufacture at the new plant. The tariffs would hinder its supply in the US market which will have an impact on earnings and can subsequently have an adverse impact on the factory.
“We hope that the Administration will recognize Samsung’s commitment to U.S. manufacturing and help us protect the nearly 1,000 additional jobs we are bringing to the U.S.,” Samsung said in a press release. That’s a more polite way of telling the US government not to shoot itself in the foot over these tariffs.
President Donald Trump is expected to make his recommendation on the matter of tariffs early this year. It’s clear that Samsung is not going to let this go without a fight.
The post Samsung basically tells the US government not to shoot itself in the foot appeared first on SamMobile.
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