Companies don't pay taxes and tariffs ... they just pass them along to
their customers.
And yet that is NOT what the real world report on tariffs show us, and
you damned well know it!
https://prosperousamerica.org/economic-view-tariff-jumping-investment-the-success-of-the-2018-washing-machine-tariffs/
In 2013, the Obama administration imposed tariffs on imported washing
machines from South Korea. This led the Korean producers to shift
production for the U.S. market to China, which led to another
anti-dumping investigation by the U.S. International Trade Commission.
That investigation published a finding in December 2016 that Chinese
washing machines benefited from subsidies (“anti-dumping margins” in the
formal lingo) of 44.28% and recommended duties at that level. The Trump
administration, with U.S. Trade Representative Robert Lighthizer as the
driving force, decided instead to impose global duties or tariffs on all
imported large residential washing machines, whatever their source. The
duties, imposed in January 2018, started at 20% and once the quota of
1.2 million imported washers was reached, rose to 50%.
For years, the two large importers, Samsung and LG Electronics, had
opposed any import restrictions. But once those tariffs were in place,
the Korean manufacturers quickly changed their tune.
In 2018, LG Electronics completed an investment of $360 million in a new
“smart factory” in Clarksville, Tennessee. LG hired 700 employees and
began building washing machines there. In April 2021, it announced that
it had produced 1 million washing machines at Clarksville. It said it
was investing a further $20.5 million and hiring 300 more employees, to
bring its Clarksville headcount to “about 1,000.” In December 2022, LG
announced three new model washing machines capitalizing on the trend
towards energy-efficient and “smart” (i.e. Internet-enabled) appliances.
Those new models are all to be made in Clarksville.
Buck Dellinger, CEO of the Clarksville Industrial Development Board,
told us that LG Electronics is one of a number of large companies that
have chosen to build facilities in the Clarksville industrial park.
Clarksville set up the industrial park 22 years ago to build up an
industrial base to offer alternative employment in case the nearby Fort
Campbell army base reduced its presence in the area. In the last five
years, the industrial park has added 4,514 direct jobs, and a total of
7,236 including indirect jobs, Dellinger said. Indirect jobs include
suppliers to the companies in the industrial park, and service companies
serving employees such as restaurants and convenience stores. In the ten
years to 2022, Clarksville’s average salary grew 77%, as compared to the
U.S. growth rate of 62%. With 177,000 residents, Clarksville is adding
population at over 3% a year and is now Tennessee’s fifth largest city,
right behind Chattanooga.
“We’re ecstatic to have LG Electronics in the region,” said Buck
Dellinger. “Advanced manufacturing helps to give us low unemployment, a
high workforce participation rate, and a young workforce.” Dellinger
recently returned from a trip to South Korea where he met with LG
executives. “They are a very stable company, and take good care of their
employees. They have enough land here to quadruple their operation and
we hope they do.”
It’s a similar story in Newberry, South Carolina, where Samsung built an
appliance facility in 2018. In 2017, recognizing that the Trump
administration was determined to clamp down on washer imports, Samsung
announced plans to invest $350 million to build a manufacturing facility
in Newberry, South Carolina with 1,000 employees. In 2020, Samsung
invested an additional $120 million to expand the facility, which now
employs 1,200.
Newberry is a smaller, more rural and agricultural area than
Clarksville. Located 40 miles northwest of Columbia, Newberry County’s
population is just 38,000. Samsung is one of only two manufacturers in
the county with more than 1,000 employees. The other is a food
processing company. As a relatively high-tech appliance manufacturer
that designs as well as manufactures products, Samsung has had a
significant impact on business, jobs, and prosperity in Newberry County.
According to a local news report last October, the “Samsung effect” in
Newberry has contributed to investment in new housing developments, new
restaurants and other new businesses in the area. The report quoted John
Worthington, Executive Chef at local restaurant Figaro the Dining Room,
who said: “with these bigger corporations like Samsung coming in,
they’re bringing in good-paying jobs which makes the economy and the
town better.” Figaro is currently advertising for employees.