LG Electronics Inc will raise prices of most of its washing machines in the United States, the South Korean company said on Wednesday, two days after the Trump administration slapped steep tariffs on imported large residential washing machines.
The tariffs will affect most front- and top-load type washers, LG said in a letter to retailers, without mentioning the magnitude of the price hikes.
GET FREE EQUITY TIPS ON MOBILE AND INDIAN STOCK MARKET RECOMMENDATIONS CALL ON 9644405056!
On Monday, U.S. President Donald Trump approved recommendations to impose tough safeguard tariffs on washing machines, following findings by the U.S. International Trade Commission that these imports were “a substantial cause of serious injury to domestic manufacturers.”
A 20 percent tariff will apply on the first 1.2 million imported washers in the first year and a 50 percent tariff on machines above that number.
The ITC’s recommendations, which would protect American appliance makers including Whirlpool Corp, were made in November to keep Samsung Electronics Co Ltd and LG from flooding the U.S. market with inexpensive washers.
Trump ignored a recommendation from the ITC to exclude South Korean-produced washers from LG from the tariffs, as prior anti-dumping duties on these machines have been dropped.
Anticipating such a move, LG has been building a washer factory in Tennessee that will begin production as early as the end of 2018, while Samsung recently began washer production in South Carolina.
Jon Abt, co-president of retailer Abt Electronics, said the price of washers made outside the United States may increase only by about $50 as he expected the tariff to be borne by manufacturers rather than consumers.
An LG spokesman said nothing had been decided on the timing or amount of its washer price increase.
LG said on Monday it was disappointed by the tariff move and called it a “misguided decision” that would hinder the ramp-up of its plant in Tennessee and that threatens new U.S. jobs.
For more visit us at www.ripplesadvisory.com
Or mail us here: firstname.lastname@example.org
Contact us on (+91) 9644405056 (Quick Free Trials)
Customer Care Service: (+0731) 242-7007