NEW TARIFFS HELP ADD JOBS IN OHIO
Moves made to aid U.S. manufacturing may cost consumers, though.
New import tariffs placed on large washing machines and solar-energy components on Tuesday by President Donald Trump in a bid to help U.S. manufacturers may not be the last to have a big impact on Ohio.
Ohio is home to a Whirlpool location that is one of the world’s largest manufacturers of washing machines, and the Buckeye State has a number of large steel manufacturers, including AK Steel in Middletown.
The state’s steel industry could prosper on future tariffs on steel imports to the U.S. that have been proposed and suggested to President Trump.
Last week, U.S. Secretary of Commerce Wilbur Ross submitted the findings of an investigation into steel mill product imports and how they impact national security. President Trump is expected to respond to the report in the next 90 days.
Trump’s administration suggested in 2017 it was considering tariffs on steel imports that have been encouraged by the Ohio industry that employs more than 10,000 workers, including more than 2,400 at AK Steel, and the state’s two U.S. Senators.
In the wake of the new U.S. tariffs, Dayton-area and Ohio businesses told this newspaper they are sifting through the pros and cons of the trade actions.
Whirlpool said it will add 200 jobs after the Trump administration imposed a tariff of up to 50 percent on large residential washing m achines, a penalty aim ed squarely at rival manufacturers
Samsung Electronics Co. and LG Electronics Inc.
Whirlpool, which has a large manufacturing location north of Dayton in Greenville, said the jobs will be added to its Clyde, Ohio, washing machine manufacturing location in northern Ohio. The company employs 10,000 workers in the state.
The company also said the actions will result in new jobs in Kentucky, South Carolina and Tennessee.
Last year, Whirlpool cut the ribbon on a $17 million doubling in size of its distribution center in Greenville, a site that supports shipments of KitchenAid small appliances.
“This is a victory for American workers and consumers alike,” Jeff Fettig, Whirlpool CEO, said in a statement. “By enforcing our existing trade laws, President Trump has ensured American workers will compete on a level playing field with their foreign counterparts, enabled new manufacturing jobs here in America and will usher in a new era of innovation for consumers everywhere.”
The administration also announced tariffs on imported solar cells and modules.
Nationally, the Solar Energy Industries Association predicted that the trade moves will cost 23,000 U.S. jobs this year, mostly tied to the sale and installation, rather than the production, of solar products.
But local owners of solar businesses aren’t so sure. One entrepreneur who sells and installs solar arrays says he’s at peace with tariffs of up to 30 percent against some imported solar parts, even though the measures will likely make some of his products more expensive.
“We need to protect American jobs,” said Jim Bustillo, owner of Star City Solar in Miamisburg.
“I think we do need to bring (solar component) manufacturing back to the U.S.,” said Neil Chaudhry, chief executive of Solar Power and Light, also in Miamisburg.
One reason the tariffs are noteworthy: President Trump campaigned on the theme of making trade work for ordinary American employees, particularly in manufacturing, but the Republican Party historically has been a voice for free markets, letting producers work where labor is less expensive.
“It’s (the tariffs) going to make my job a little more difficult with regard to selling the product,” said Bustillo, of Miamisburg’s Star City Solar, which sells and installs solar cells and components.
But’s he’s OK with that. “It’s not bad news for Americans, to help the working man in the United States,” Bustillo said.
The products Star City Solar sells are a mix of American-made and imported products. But Bustillo said he assures customers that solar equipment pays for itself in time.
“Solar panels are not an expense,” he said. “They’re an investment.”
Chaudhry, majority owner and CEO of Solar Power and Light, said he sees pros and cons to the tariff maneuvers.
“The first reaction is, that’s bad, tariffs are always bad, it’s never a win-win situation,” he said.
U.S. consumers will pay more for affected solar industry products, he said. “That’s what you would expect, and that’s mostly what happens. The downside is, it’s a tax on consumers ... there are going to be some consumers who won’t be able to afford it.”
Some component prices can be lowered somewhat, however, giving sellers some flexibility, Chaudhry added. His company designs, installs, builds and maintains solar arrays. He is not a manufacturer.
The Trump tariffs may help make U.S. manufacturing of solar parts more competitive, though. Chaudhry sees a chance to either get into manufacturing or to partner with an American manufacturer.
“People figure out ways to be more competitive and keep the industry growing, because it is growing by leaps and bounds,” Chaudhry said.