Shares of Whirlpool Corporation (NYSE:WHR) opened more than 5% higher on Tuesday following President Donald Trump’s decision to impose tariffs on imported washing machines.
The Trump administration will slap a 20% tariff on the first 1.2 million imported large residential washing machines in the first year of the new policy. The tariff will increase to 50% on any additional machines above that number.
The tariffs will help Whirlpool compete with Asian competitors like Samsung (KS:005930) and LG, although Credit Suisse (SIX:CSGN) analyst Susan Maklari said that these two competitors already have plans to increase U.S.-based manufacturing.
“All those producing in the US will now face a similar cost structure, creating a more level playing field,” Maklari wrote in a note to clients. “That said, [Samsung and LG] have commenced construction of U.S.-based capacity, which is expected to come on line over the next 12-18 months. As such, we expect this decision to become less impactful in time.”
Still, Samsung has expressed its disappointment with the decision shortly after the tariff was announced on Monday. In a statement, the South Korean manufacturing giant described the policy as “a great loss for American consumers and workers.”
On the other hand, Whirlpool promised to add jobs and increase investments in manufacturing and innovation in the wake of the tariff. The home appliance behemoth said on Monday that it will add 200 full-time jobs at a factory in Clyde, Ohio.
The Trump administration’s new tariff policy also includes a penalty on imported solar cells. These fees will include a 30% charge on anything after the first 2.5 gigawatts of imported cells, which will fall to a 15% charge by the fourth year.
Shares of several American solar parts makers, including First Solar (NASDAQ:FSLR) , were in the green during morning trading Tuesday.
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