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LG raising prices of washing machines, blames Trump tariffs
Goldman Sachs and other analysts expect that more manufacturers may do the same, and that washing machines' prices in general could rise 8%-20% because of the new tariff.
By Rick Docksai
Contributor
Feb 22, 2018

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WASHINGTON D.C. —


President Trump's new tariffs got a cold reception from washing-machine manufacturer LG Electronics. The company said Wednesday that it is raising its washing machines' prices as a result, in a move that some industry analysts expect other manufacturers may follow.
"We are very disappointed in this misguided decision, which far exceeds what the expert agency recommended," said LG on Tuesday. "This is a textbook case about how certain companies can game the process to use trade laws to try to accomplish what they can't accomplish in the marketplace."

The new tariff, which Trump announced Monday, will run for three years and consist in the first year of a 20% fee on the first 1.2 million imported large residential machines and a 50% fee on all machines past that number. It will diminish over the two following years.
This tariff is in addition to a separate 30% tariff on imported solar panels, which Trump also declared Monday.
Solar industry leaders warned that the solar tariffs will raise consumer prices, and business leaders assessing the washing-machine tariff anticipate that it will have similar results.
Goldman Sachs predicted that prices of washing machine will rise 8%-20% higher because of the new tariff. The Wall Street Journal cited industry experts who said that some of LG's washing machines may rise by $50 apiece.
Trump's tariffs have the support of U.S. manufacturer Whirlpool, which praised the new tariff as a "victory for American workers and consumers" that will "result in new manufacturing jobs." Whirlpool's shares rose 3.6% Wednesday, topping off a 6% increase since the start of the week.