Swedish appliance maker halts Tennessee project after tariff announcement
NASHVILLE, Tenn. (AP) — Electrolux says its plans for a $250 million plant expansion in Tennessee are on hold, and the Swedish appliance maker is pointing to President Donald Trump’s tariff action as the reason.
The company’s investment plans, announced in January, included modernizing and adding 400,000 square feet to the plant in Springfield. Construction was slated to begin later this year.
Electrolux is citing Trump’s announcement of new tariffs on imported aluminum and steel.
“Unfortunately, this decision gives foreign appliance manufacturers a cost advantage that is hard to compete against,” Electrolux spokeswoman Eloise Hale said in a statement to The Tennessean .
Hale said the company is still evaluating the recent tariff announcement, but is so concerned about the potential financial impact that it put the Springfield project on hold until Trump’s order is signed and final details are clear.
All of the carbon steel the company uses in its U.S. manufacturing plants comes from American steel mills, Hale said.