LG Electronics plans to hike U.S. washer prices by 4-8 percent after tariffs


SEOUL (Reuters) – LG Electronics Inc (066570.KS) said on Thursday it was planning to raise prices of its washing machines in the United States by about 4-8 percent, after the Trump administration slapped tariffs on large imported residential washers. LG and rival Samsung Electronics (005930.KS) had hoped to avoid any fallout from U.S. President Donald Trump’s “America First” manufacturing and jobs mantra, but took a hit after his decision last month to impose tariffs of up to 50 percent on imports of washing machines and key components. According to a South Korean newspaper, the two companies are planning to hike the prices of their washing machines in the United States by about 5-10 percent in the second quarter. They are currently in talks with U.S. retailers such as Best Buy (BBY.N), Home Depot (HD.N), Lowe’s (LOW.N) and Sears, Korea Economic Daily reported, citing unnamed industry sources. LG, which had said it would hike prices in the United States after the tough tariffs were announced, did not specify when the 4-8 percent rise would come into effect. The company will concentrate its efforts on selling more of its premium washing machines, priced at $900 or more, in the United States, an LG spokeswoman said. Samsung Electronics did not have an immediate comment. Asked if it plans to raise washer prices in the United States, Samsung previously said it was reviewing the implications of the U.S. decision and any changes would be discussed with its business partners directly. Reporting by Joyce Lee; Editing by Himani SarkarOur Standards:The Thomson Reuters Trust Principles.
Source: Reuters