LG Washing Machine Price Hike Confirmed After Trump's Import Tariff

In early 2017, word surfaced that Samsung and LG were both looking into opening manufacturing facilities in the US over concerns about potential steep import taxes threatened by the Trump administration. Samsung eventually confirmed plans to open a facility in South Carolina, and more recently the Trump administration announced those feared steep tariffs against both imported solar panels and washing machines. Now price increases are coming.

LG recently sent a letter to retailers in the US advising them that the cost of most of its washing machines will be increasing due to the import tariffs, according to Reuters. The tariffs usher in Trump's second year and his so-called "America First" policy; criticism has been swift and severe.

In addition to targeting primarily Chinese solar panel makers, the new tariffs are a slap to South Korean washing machine manufacturers, particularly LG and Samsung. To deal with the higher import costs, LG Electronics will reportedly be increasing the cost of its large residential washing machines, with speculation putting that increase at around $50 per unit.

The letter allegedly states that the tariffs are going to affect most of LG's top-load and front-load washing machines, but the letter itself doesn't detail the price increase consumers can expect. In a statement, LG had called the import tariff's a "misguided decision."

The tariffs have likewise proven unpopular in South Carolina, itself a state that had largely favorable attitudes toward Trump during election season. The state is home to Samsung's new $380 million production plant, which only recently started production. State officials have expressed concerns that the new tariffs could slow down that production.

SOURCE: Reuters