LG Electronics announced that it is going to raise the prices on some of its washer and dryer models by as much as $50 in response to President Trump’s decision this week to impose massive new tariffs on imported washing machines.
“As a result of the trade situation, we will be initiating pricing actions, which will be sent under separate cover shortly,” Thomas Yoon, an executive at the South Korean manufacturer, told retailers in a memo, according to The Wall Street Journal.
LG will likely raise prices on some of its laundry appliances by about $50, according to the Journal.
“The penalties were more severe than recommended by the International Trade Commission, and we’re making some adjustments,” an LG spokesman told the Journal.
John Taylor, senior vice president for government relations at LG Electronics USA, said the Trump administration’s “penalties are not justified.”
The Hill added:
Tariffs were imposed despite the LG’s plans to build factories and its corporate headquarters in the United States, Taylor said during a Heritage Foundation trade event on Tuesday.
The tariffs could hamper those plans, he said.
LG washers run about 20 percent higher in price than Whirlpool brands, Taylor said.
Many congressional lawmakers and trade experts warn that tariffs will raise prices for consumers, cost U.S. jobs and hurt the economy.
“My main concern is that President Trump’s decisions will lead to a flood of Section 201 cases in which U.S. companies ask for tariffs and he increasingly grants it,” said Chad Bown, a trade expert at the Peterson Institute for International Economics.