The US subsidiary of South Korea’s LG Electronics Co on Wednesday warned retailers that it would raise prices of its washing machines following import duties imposed by US President Donald Trump’s administration this week.
It was the first concrete reaction to the trade measures announced this week that have angered the US’ trading partners.
“As a result of the trade situation, we will be initiating pricing actions,” LG Electronics USA executive vice president of home appliances Thomas Yoon said in a letter to retailers.
Photo: Bloomberg
He said the amount of the price increases would be detailed in separate letters to the stores.
The Wall Street Journal reported that the price hike would be about US$50 on certain washer-dryer combinations.
Trump on Tuesday put his “America First” doctrine into action by imposing duties of 20 to 50 percent on large washing machines manufactured in China, South Korea, Mexico and Vietnam, in addition to a 30 percent tariff on imported solar panels.
Seoul has said it plans to take the issue to the WTO, while Beijing expressed “strong dissatisfaction” with the move adopted to protect US manufacturers. However, LG assured its retailers that supplies of the appliances would not be disrupted.
“While this is disappointing news, let me assure you that we have planned for this possibility so we can minimize any disruption in supply of LG washers and dryers to you, our valued partners,” Yoon wrote.
The South Korean company recently completed construction of a washing machine factory in Clarksville, Tennessee, which it expects to start production in the fourth quarter.
Separately, after imposing tariffs opposed by much of the US solar industry, the Trump administration is offering a US$3 million prize to revive domestic solar manufacturing.
The US Department of Energy on Wednesday said that the American Made Solar Prize would help “reassert American leadership in the solar marketplace.”
Earlier this week, Trump decided to impose tariffs of up to 30 percent on most imported solar cells used in solar panels.
A federal trade panel recommended the tariffs, which had been sought by two US manufacturers.
Most of the US solar industry revolves around installing solar systems for homeowners and utilities, and those companies have largely opposed the tariffs.
They have said that tariffs would raise their costs and make photovoltaic installations less price-competitive with other energy sources.
Additional reporting by AP
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