SEOUL (Reuters) -LG Electronics is considering price increases for some products in response to U.S. tariffs and is also reviewing its options for shifting production of home appliances to the United States, the South Korean company said on Thursday. “We are optimizing our production locations and also considering price hikes through discussions with our distribution […]
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LG considers raising prices, moving production due to tariffs
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SEOUL (Reuters) -LG Electronics is considering price increases for some products in response to U.S. tariffs and is also reviewing its options for shifting production of home appliances to the United States, the South Korean company said on Thursday.
“We are optimizing our production locations and also considering price hikes through discussions with our distribution channels as a potential response,” LG senior vice president Kim I-kueon said in a post-earnings conference call.
Kim said LG was considering moving manufacturing of home appliances, including washers and dryers, to its factory in the U.S. state of Tennessee.
The Tennessee plant’s output could cover nearly one-fifth of LG’s total home appliance sales in the U.S. market, he added.
LG expects tariffs will have a major impact on its business from the third quarter if they go ahead, Kim said, adding that, in the meantime, the company had established a roadmap for price hikes to mitigate them.
U.S. President Donald Trump has paused a raft of tariffs against dozens of trading partners until July.
Asked about LG’s Indian unit’s delayed initial public offering, Kim said the company would not rush the decision and would instead first thoroughly review the optimal timing for the IPO.
(Reporting by Joyce Lee; Editing by Christian Schmollinger and Joe Bavier)