UPDATE: Companies with TN Valley facilities respond to President Trump's tariff announcement
The president said on Thursday that the proposal includes a tariff of 25% on imported steel and 10% on imported aluminum.
UPDATE: Swedish appliance maker, Electrolux, says plans are now on hold for a $250 million plant expansion in Tennessee. That's prompted concerns about what it could mean for you and businesses here.
President Trump's plan would make imported aluminum and steel more expensive. That means the next time you buy a can of soda or a new car, an economics professor at the University of Tennessee at Chattanooga says it could cost you more.
"So, aluminum cans, VW uses steel to produce its cars, so it would make it that much more expensive for the consumer. So, the consumer will be hurt by this policy in the long run," Dr. Leanora Brown, a UTC economics professor said.
If President Trump's proposal goes through, Dr. Brown says that added expense could be passed onto you.
She says the idea is meant to protect businesses that make steel and aluminum in the U.S., but it may have some effects.
"It will have some negative implications, which can certainly feedback into the job market and lay off workers," Dr. Brown said.
Many major companies with facilities in Chattanooga use those products.
Coca-Cola puts their soda in iconic red aluminum cans.
The Volkswagen Passat and Atlas SUV are manufactured here. The manufacturer has called the president's changes restrictive and say they would impair their long-term investments in the U.S.
Dr. Brown says there's also the potential for a trade war.
"Countries will want to retaliate against this policy. I mean there's no way you're going to put a tax on me and I don't retaliate against and just allow you to send goods to my country freely," Dr. Brown said.
Dr. Brown believes the quality of products may not necessarily be better because of the tariff policy.
Even with concerns from the president's own party, he says he's not backing down and the president does not need the approval of Congress to move forward.
PREVIOUS STORY: Major companies with facilities in Chattanooga are responding to President Donald Trump's tariff announcement on steel and aluminum.
The president said on Thursday that the proposal includes a tariff of 25 percent on imported steel and 10 percent on imported aluminum.
READ MORE | Electrolux suspends plant expansion in Tennessee
Electrolux Home Products announced they would be putting a $250 million plant expansion in Tennessee on hold.
They sent the following statement to Channel 3:
"We believe tariffs are likely to cause a significant increase in the price of steel on the U.S. market. This will give foreign-made products an unfair cost advantage compared to products made in the U.S. We are concerned about the negative impact, financially and on the overall competitiveness of our U.S. operations. Until we have the final order and can understand the details, we are putting our commitment to invest $250 million in Tennessee on hold."
The Volkswagen Passat and Atlas SUV are manufactured in Chattanooga. Volkswagen is also responding to the president's plan:
"The Volkswagen Group has made significant long term investments in the United States that would be impaired by restrictive changes to trade including the proposed steel and aluminum tariffs. As part of a global company with an enthusiastic outlook for operational growth in the United States, it is our hope, in view of the importance of the automotive industry that the policymakers will maintain free and fair trade. Maintaining the existing trade rules keeps the United States a competitive marketplace for jobs, cost of goods and investments."
Stay with WRCBtv.com for more details on this developing story.