An article in the Wall Street Journal notes, After the Trump administration announced new tariffs on imported
Question:
An article in the Wall Street Journal notes, “After the Trump administration announced new tariffs on imported washing machines in January, Marc Bitzer, the chief executive of Whirlpool Corp., celebrated his win over South Korean competitors LG Electronics Inc. and Samsung Electronics Co.”
a. Why was a tariff on imported washing machines a win for Whirlpool? Did anyone lose as a result of the tariff? Briefly explain.
b. The article also notes that six months after imposing a tariff on washing machines, the Trump administration imposed a “set of tariffs on steel and aluminum. That helped drive up Whirlpool’s raw materials costs.” If the Trump administration wanted to help Whirlpool, why did it increase tariffs on steel and aluminum?
Step by Step Answer: