Mileage Psycho Posted July 25, 2018 Share Posted July 25, 2018 I recall some asshole saying "trade wars are good and easy to win" Newton's Third Law resides in trade wars. Quote Whirlpool loved Trump's tariffs. Now it's struggling "Tariffs are the greatest!" President Donald Trump said on Twitter Tuesday morning. Whirlpool used to agree. 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. Related: US-China trade brawl threatens America's booming oil exports The company on Monday slashed its profit outlook for 2018 in part because of a "very challenging cost environment." Whirlpool's (WHR) stock tanked 14% on Tuesday after it missed Wall Street's expectations. "The global steel costs have risen substantially, and in particular, in the US, they have reached unexplainable levels," Bitzer told analysts. "Uncertainty" around additional tariffs and global trade has disrupted Whirlpool's supply chain and heightened pricing pressure. Whirlpool and rivals, such as LG and Samsung, have increased prices on washing machines since the tariffs went into effect. That led some people to pass up a new purchase. Washing machine prices in June were up close to 20% from a year prior, according to the Labor Department. Related: LG is raising washing machine prices due to new Trump tariff Whirlpool's sales in the United States fell 2.2% last quarter due to "very slow market demand," Bitzer said. In Europe, the Middle East and Africa, the company's second largest market, sales tumbled 12%. The company hinted that it planned to continue raising prices to offset raw material inflation, which means that consumers holding out for a cheaper dryer might have to wait a while. Despite more expensive units, Whirlpool expects sales to recover in the United States in part from a growing economy. "We are encouraged by the strength of the US economy, including low unemployment and healthy housing demand," said CFO James Peters. https://money.cnn.com/2018/07/24/news/companies/whirlpool-washing-machines-trump-tariffs/index.html Quote Link to comment Share on other sites More sharing options...
Cold War Posted July 25, 2018 Share Posted July 25, 2018 Quote Link to comment Share on other sites More sharing options...
racer254 Posted July 25, 2018 Share Posted July 25, 2018 11 minutes ago, Cold War said: Gotta love how the media always gets together to really dole out the talking points. Quote Link to comment Share on other sites More sharing options...
Mainecat Posted July 25, 2018 Share Posted July 25, 2018 36 minutes ago, racer254 said: Gotta love how the media always gets together to really dole out the talking points. In the sane world it’s called actual news. Quote Link to comment Share on other sites More sharing options...
racer254 Posted July 25, 2018 Share Posted July 25, 2018 1 hour ago, Mainecat said: In the sane world it’s called actual news. Actual news does not start with a bias headline. But, with that topics you post, I don't expect you to understand that. Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted July 25, 2018 Share Posted July 25, 2018 1 hour ago, Mainecat said: In the sane world it’s called actual news. Trump told you not to pay attention to what other people say is happening. You just have to beleive and his ministry of truth. All the Trumpsters are ok with this. He’s even giving them playboy models and pornstars to talk about. Why do you have to be difficult? Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted July 25, 2018 Platinum Contributing Member Share Posted July 25, 2018 Whirlpool's sales in the United States fell 2.2% last quarter due to "very slow market demand," Bitzer said. In Europe, the Middle East and Africa, the company's second largest market, sales tumbled 12%. Quote Link to comment Share on other sites More sharing options...
racer254 Posted July 25, 2018 Share Posted July 25, 2018 2 minutes ago, Highmark said: Whirlpool's sales in the United States fell 2.2% last quarter due to "very slow market demand," Bitzer said. In Europe, the Middle East and Africa, the company's second largest market, sales tumbled 12%. Also, Washing machine prices in June were up close to 20% from a year prior, according to the Labor Department. Quote Link to comment Share on other sites More sharing options...
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