Steep Tariffs Force LG to Hike Washer Prices in U.S.
27 January, 2018
LG will hike prices of washing machines in the U.S. after the U.S. government decision to impose steep tariffs on the imports.
The Wall Street Journal on Wednesday said LG notified U.S. retailers that "as a result of trade situation, we will be initiating pricing actions, which will be sent under separate cover shortly."
Industry insiders expect the prices of washers and dryers to go up by at least US$50. An LG spokesman admitted the increase is coming but refused to say when and how much. He added that the company will do its best to minimize the effect on consumers.
The WSJ said U.S. President Donald Trump's protectionism is starting to take its toll on the U.S. market. "Korean and Chinese companies hit back at Trump's new tariffs, ...U.S. consumers will be pinched by higher prices and companies will be diminished by hurting their global competitiveness," it said.
Trump's decision early this week to impose steep tariffs on washing machines will be implemented over a three-year period, starting with 50 percent tariffs in the first year for imports surpassing 1.2 million units, followed by a slight decrease in the next two years to 40 percent.
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