LG to Raise Prices on Washers After Trump Imposes Steep Tariffs
Source: wsj
Increases of about $50 are likely on at least some washing machines and dryers
LG Electronics Inc. washing machines moving along the production line at the company's factory in Changwon, South Korea. Photo: SeongJoon Cho/Bloomberg News
By Andrew Tangel
Updated Jan. 24, 2018 5:47 p.m. ET
176 COMMENTS
LG Electronics Inc. 066570 -6.39% has told retailers it plans to raise prices on its laundry appliances following President Donald Trumps approval this week of steep 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 dated Wednesday and reviewed by The Wall Street Journal.
Industry experts say they expect LG will raise published retail prices on at least some of its washer and dryer models by approximately $50. Washers and dryers are often sold in pairs.
An LG spokesman confirmed Mr. Yoon had sent the memo but declined to discuss specifics about the potential extent of the price increases or their timing. The penalties were more severe than recommended by the International Trade Commission, and were making some adjustments, the spokesman said, adding a goal was to minimize disruption for consumers.
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Read more: https://www.wsj.com/articles/lg-to-raise-prices-on-washers-after-trump-imposes-steep-tariffs-1516819656
I do think this will hurt the average family, person. $50 extra dollars is a lot of money.
Will Trump's Import Tariffs Cause Trade Wars?
President Trump signed an executive order on Tuesday that imposed tariffs on washing machines and solar panels. WSJ's Gerald F. Seib examined whether these moves could ignite a trade war with South Korea and China. Photo: AP
Eliot Rosewater
(31,150 posts)Trump is too dumb to know what to do about anything.
still_one
(92,526 posts)will do is make the cost of appliances more expensive to Americans, with no significant benefit to U.S. companies since most of them are out of the appliance business
What an idiot
That is why you don't just randomly go off half-cocked and do unilateral actions, especially in regard to trade. It should also be kept in mind the the U.S. also exports products to other countries, and even though we have a trade deficit, there is still a significant amount of money involved in U.S. exports, so if a trade war started, no doubt there would be unforeseen consequences
Eliot Rosewater
(31,150 posts)But chief traitor is dumb, he doesnt know the first thing about business
erronis
(15,470 posts)Much like W didn't have anything to say without Cheney/Rummie/Wolfie to feed him the words.
If we were to nicely ask dump, "Why do you think this is a good idea?" do you think you'd get a coherent answer that you could take to the GATT/etc. that they would understand?
pangaia
(24,324 posts)It is part of the russian's and TPTB's plan to destroy america...
Kolesar
(31,182 posts)My range is domestic.
Historic NY
(37,462 posts)appliances under many names worldwide. They may assemble in Ohio but you can bet their parts productions is centralized elsewhere.
[link:https://en.wikipedia.org/wiki/Electrolux|]
Not many people buy high end appliances, super expensive.
I've been trying to source a specific size refrigerator, GE stopped making, Maytag doen't have. Your limited if your kitchen cabinets only allow for 67 1/2 to 69 inches. People wanted bigger refrigerators with all kinds of bells and whistles.
I probably going to go with Fisher/Pakel from New Zealand but they are assembled in Michigan.
Prices are going to rise. Like shoes & Tv's very few if any still made here.
erronis
(15,470 posts)Historic NY
(37,462 posts)What next cars.
pangaia
(24,324 posts)Luciferous
(6,087 posts)Luciferous
(6,087 posts)Frigidaire and GE are made here, Bosch manufactures dishwashers in North Carolina- there are still plenty of appliances made here, and that includes a lot of the components!
dhol82
(9,353 posts)The original was 30 inches.
Last time I needed to replace it there was one manufacturer that made an oven that size.
Dont want to know what is out there now.
still_one
(92,526 posts)American multinational corporation, and they also sell quite a large number of their appliances international. They also bought Maytag
Amana, KitchenAid and Jenn-Air are American companies, but much of their manufacturing is abroad.
Appreciate the correction for my incorrect generalization
Mr.Bill
(24,373 posts)Brilliant timing by the alleged president.
Eliot Rosewater
(31,150 posts)Looks like being interviewed by Mueller is too much for him, time for war.
Dem4eva
(41 posts)I've been convinced for quite some time they want to burn the whole country down to the ground. Then they can build it back up with their Russian buddies. But they're too dumb to realize the Russians would never partner with them in any way. Russians would dispose of them (and still might) when they are no longer of any use.
quartz007
(1,216 posts)so long as my 401-k is going gang busters.
Eliot Rosewater
(31,150 posts)quartz007
(1,216 posts)The main concern I have is environment, with tRump eviscerating EPA regulations. I can't honestly complain about the economy.
Angry Dragon
(36,693 posts)erronis
(15,470 posts)Nobody wants a corroded trump sign or a past-its-prime ivanka bing. So SAD, SAD!
Kolesar
(31,182 posts)They sold them at under fair market price to take market share. Sears helped them.
not fooled
(5,807 posts)Always made in the U.S. and awesome.
I love my Speed Queen! Durable and does a great job.
Squaredeal
(404 posts)I bought my LG for half that price and Im very pleased with it. Best washer Ive ever owned. Stackable too.
Demsrule86
(68,825 posts)the American market illegally.
hamsterjill
(15,224 posts)Been there, done that. No thank you ever again. Speed Queen all the way.
Demsrule86
(68,825 posts)discover cheap shit from overseas is not really worth it. We need jobs in this country...not cheap imports. Cheers. Have a good evening.
quartz007
(1,216 posts)As everyone knows, the manufacturing jobs are middle class jobs. Average wage is 2 to 3 times of those working in McDonalds or Walmart.
If one has a middle class job making good wages, they can afford to buy US made products. Which is better, minimum wage jobs buying LG washers or Manufacturing job who buys Speed Queen washers.
Egnever
(21,506 posts)Are you sure about that?
When the unions were strong manufacturing was good now not so much.
Alliance laundry are the makers of speed queen.
https://www.indeed.com/cmp/Alliance-Laundry-Systems-LLC/salaries
You can make those salaries at in and out here in Vegas.
quartz007
(1,216 posts)from 1962-1986 and the salaries were great. In 1978 the union was voted in and I quit in 1986. I heard the company was sold and was in distress. After 1986, I worked for a government contractor, and it was great as well.
Egnever
(21,506 posts)The unions have lost a lot of ground since then.
12.67/hour on a manufacturing line is not a great job in my opinion. It could be if the pay was raised but we all know that is not where we are heading. You can make that wage almost anywhere many that are far less physically demanding.
Obviously 12.67 is more than they pay in some of the countries the jobs are being transferred to but that does not make it a good job.
Demsrule86
(68,825 posts)under 25. The cheap shitty foreign plants who make parts for the Japanese and Korean cars make 10-12 an hour ...no safety checks either...a young woman was crushed to death last year at one of those plants. And if they were not being beaten to death by dumping American companies could pay more.
Egnever
(21,506 posts)that said we were talking about the makers of the washing machine who pays it's workers 12.67 to start.
Still the idea the foreign auto plants are paying less here in the us does not actually hold up either.
https://www.reuters.com/article/us-autos-labor-costs/-u-s-auto-labor-cost-study-shows-impact-of-two-tier-wage-system-idUSKBN0MJ24U20150323
Of the other automakers operating in the United States, Honda Motor Co (7267.T) workers earned on average $49 per hour, Toyota Motor Corp (7203.T) $48, Nissan Motor Co (7201.T) $42, Hyundai Motor Co (005380.KS) and its corporate stablemate Kia Motors Corp (000270.KS) $41.
The difference in those wages is deceiving though as the US manufacturers come to that figure by dividing pension costs for all workers into the average salary of current workers.
Toyota actually pays the lowest but they also get a decent profit sharing check that has in many years brought their pay right up to competitive levels.
I am all for strong unions and think we need them desperately right now. That said the idea american companies pay more is just not really true any more. It can be again but our public has a very anti union sentiment right now as evidenced by VW practically begging it's workers to unionize and the workers refusing to.
My wife is a union member and her union is going through hell right now the local chapter is withholding dues from the state chapter and the workers have lost their life insurance coverage because of it and are looking like health benefits will be next to go.
EllieBC
(3,052 posts)Top loaders. They last longer and wash clothes better. My top loader is an ancient beast I found on Craigslist after my pricey yet shitty front loader died.
IthinkThereforeIAM
(3,078 posts)... bought new with my first house. Had the house for ten years. Sold the set along with the house to the buyer. Never a problem with them in 10 years! And they were one notch below top of the line. $635 for the pair as I recall, back in 1988, ha.
marybourg
(12,650 posts)although they have electronic models now too. I don't know if those are as good.
hamsterjill
(15,224 posts)Simple but awesome!
Baclava
(12,047 posts)Back to Whirlpool?
Luciferous
(6,087 posts)appliances and employs 12,000 people. My husband's factory employs 1200. There are plenty of places that still manufacture appliances in the U.S..
watoos
(7,142 posts)made in Wisconsin I think. The first week the electronics board went bad. They shipped me a new one overnight, it didn't work. I noticed the dip switches on the board were set different. It was because the board is made in Mexico which has different hertz, all I had to do was flip the switches. I'm interested in learning what % of parts that go into washers are foreign parts, 8% isn't bad. After so many units foreign parts will taxed at 50%. I always bought/buy American, have never shopped at Walmart.
Demsrule86
(68,825 posts)they screw us every way they can. And I returned one of their washers after the board melted down.
Demsrule86
(68,825 posts)of Americans. Buy American when you can.
burrowowl
(17,656 posts)but not washers or dryers.
The POS is a shit-hole.
Is he going to attack other appliances next?
Demsrule86
(68,825 posts)(but still nice) so I can have one of those viking side by side double ovenranges...you can get good deals on Ebay and sometimes on overstock.
marybourg
(12,650 posts)is the whole point. It makes the American-made competing product more competitive.
Demsrule86
(68,825 posts)been more unfair to American manufacturing then Korea. They don't take our cars or anything...I believe in protecting and increasing American manufacturing...hope they put a tariff on the cars.
Kolesar
(31,182 posts)The rest of the world has harmonized standards. Korea applied a barrier that would have meant a huge amount of expense in testing and documentation.
Then they offered that we could just pay hundreds of thousands to some "agent" in California who was a Korean expat and get accepted.
The Obama government leaned on them and forced a trade deal that cleared that mess .
Demsrule86
(68,825 posts)Last edited Wed Feb 7, 2018, 09:10 PM - Edit history (1)
When hubs worked for GM, they scrapped a bunch of cars supposed to go to Germany...They just refused to take the agreed on amount. They couldn't be sold here.
Cold War Spook
(1,279 posts)Two years later got another one from Lowes, something wrong with computer they couldn't fix, good long term warranty. Two years later got another one from Lowes, something wrong with the computer, good long term warranty. I now have a Samsung. All were $1,000 machines. Don't have a clue where they were made.
Demsrule86
(68,825 posts)online. I looked everywhere. We are moving and I am sending my handicapped sis to stay with my hubs in our new house in cleveland while I prepare this house for sale...we put in a shower in the new house (she can't do tub showers) and needed a washing machine and dryer.
riversedge
(70,464 posts)the one in the rental went bummer over a month ago. She said she is looking for a cheaper one. Meanwhile she has 2 kids and hubby who is laborer who gets cloths dirty every day. She has been washing at my place. Bet she never gets the washer.
cos dem
(903 posts)And, at $1.50 per month, you'll have a whole dollar left over.
Doodley
(9,176 posts)for the wall.
Mosby
(16,422 posts)They help compensate countries that have higher standards and encourage countries like Mexico to improve pay, workplace safety, building codes and environmental standards.
There should be more tariffs, not less, personally I don't understand how so many progressives became fans of completely open free markets. It only hurts the US and middle class in particular.
Doodley
(9,176 posts)That would not help anyone in poverty in China. It would be devastating to the Chinese economy and also US economy.
Mosby
(16,422 posts)He just knows that it plays well with some of his base.
I agree with everything Howard Dean talked about regarding trade during his campaign.
http://www.ontheissues.org/celeb/Howard_Dean_Free_Trade.htm