South Carolina, Home to New Samsung Factory, Is Disappointed by New Tariffs
23 January 2018 - 11:50PM
Dow Jones News
By Valerie Bauerlein
South Carolina, a state that strongly backed President Donald
Trump, isn't happy about his move to impose hefty tariffs on
imported washing machines.
That is because Samsung Electronics Co. recently started
production at a $380 million manufacturing plant in the state,
hiring 600 employees and promising to expand as it increases
production for the U.S. market.
Republican Gov. Henry McMaster and other GOP state leaders
expressed concern that the tariffs announced Monday would slow
production at the new factory and have a chilling effect on
investment.
Gov. McMaster had traveled repeatedly to Washington, D.C., to
lobby against the tariffs, telling the International Trade
Commission last fall that Samsung is becoming a domestic industry.
A spokesman said the governor is "obviously disappointed" and would
continue to fight for South Carolina jobs.
U.S. Rep. Mark Sanford, a Republican, said Monday that
protectionist policies and tariffs, while politically popular, are
economically dubious. "This is a mistake," he said.
U.S. trade officials said the tariffs are critical to protect
American companies and to make good on the Trump administration's
promise to put America first. The tariffs are aimed mainly at Asian
manufacturers--Chinese makers of solar panels and South Korean
producers of washing machines.
The washing-machine petition was filed by Whirlpool Corp., which
is locked in competition with Samsung and LG Electronics Inc. of
South Korea.
Once a major textile and apparel producer, South Carolina saw
those industries dry up decades ago and has since turned to foreign
investment to boost its economy, drawing factories from Boeing Co.,
Germany's BMW AG and Chinese textile maker Keer Group. Samsung was
its latest catch.
South Carolina voters supported Mr. Trump, delivering a decisive
victory in the 2016 primary and choosing him by 55%-41% over
Democrat Hillary Clinton in the general election. Voters said
President Trump's protectionist message resonated, particularly in
the many former textile-producing communities that felt untouched
by the manufacturing resurgence fueled by foreign investment and
concentrated in the state's northwest.
State officials also fretted over a separate tariff announced
Monday on solar-panel imports. Leaders of the S.C. Energy Caucus
said the solar tariffs would likely hurt ratepayers who face a
virtual monopoly and pay some of the highest electric rates in the
U.S.
"We deserve better than this," said state Rep. Nathan
Ballantine, the energy caucus chair and a Republican from suburban
Columbia.
Republican state Rep. Rick Martin said Monday that the
washing-machine tariffs were a blow to Newberry, which he
represents and where residents had cheered the recent start of
production at the new Samsung factory.
Mr. Martin said he is concerned that Samsung would slow its
expansion in Newberry County, population 38,000.
"This meant the world to us, more jobs for our community that
can help our community grow," Mr. Martin said. "Now young people
are going to have to leave our community to find jobs."
(END) Dow Jones Newswires
January 23, 2018 07:35 ET (12:35 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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