Manufacturers hiked the prices of washers and dryers in response to the tariffs, according to new research.
U.S. consumers shouldered the cost, and then some, of the Trump administration's 2018 tariff on washing-machine makers, research shows. By Christopher Ingraham Christopher Ingraham Reporter covering all things data Email Bio Follow April 23 at 1:27 PM President Trump has repeatedly sought to portray his tariffs on Chinese goods as a major windfall for the U.S. treasury that has extracted “billions of dollars” from China.
The authors ran their analysis using weekly price data on appliances from the market research firm Gap Intelligence. If the tariffs cost $82 million but consumers are paying $1.5 billion, where’s the rest of that money going? Foreign manufacturers are passing some costs on to consumers, while domestic ones are simply pocketing extra profits, according to the study.
Domestic manufacturers were able to do this simply because they don’t have much U.S.-based competition. “The market for washing machines is concentrated, and the domestic manufacturers certainly have market power,” Tintelnot said. The tariffs were implemented in January 2018 in response to a complaint from Michigan-based Whirlpool about low-cost competition from companies such as South Korea’s Samsung and LG. At the time, Whirlpool’s chairman, Jeff M. Fettig, framed the tariffs as a win for workers and consumers. “This announcement caps nearly a decade of litigation and will result in new manufacturing jobs in Ohio, Kentucky, South Carolina and Tennessee,” he said.
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