After the Trump administration’s decision to push up tariffs for foreign made washing machines and solar panels, LG announced that its products will cost more on the U.s. market.
Citing LG executive Thomas Yoon, the Wall Street Journal reports that the current “trade situation” the South Korean electronics giant will initiate “pricing actions” to offset the larger tariffs.
LG hasn’t replied to a request for comment.
Industry analysts have projected that the prices of non-USA-made washers and solar models will skyrocket after President Trump’s decision. The new taxes were approved by the U.S. Trade Representative and signed off by the President.
Foreign washing machines will be slapped with a 50% tariff upon entering the country, while solar panels will see the levy jump to 30%. The Trump administration explained that cheaper washers and solar technology coming from other countries are killing the domestic manufacturing.
The measures are targeting major exporters like China and south Korea, but they will be applied on all foreign products regardless of country of origin.
LG Washing Machines Will Cost More
Trump’s decision comes as a response to Whirlpool’s complaints that cheaper Korean washers are killing its business. Korean companies have been reportedly flooding the U.S. market with discounted washers between 2012 and 2016.
On top of that, the U.S.-based solar panel makers Solar World and Suniva slammed China for massively subsidizing its solar panel industry over the same period of time. Currently, China owns 71% of the global solar panel market.
The U.S. International Trade Commission largely agreed with these complaints, saying that cheaper machines and solar panels were seriously injuring the U.S. manufacturers under a trade law passed in 1974.
The heavier duty o Korean machines will gradually lower and expire in 2021. The larger tax on solar panels will follow a similar path and expire in 2022.
Image Source: Wikimedia
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