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Author Topic: LG is raising washing machine prices due to new Trump tariff  (Read 1047 times)

Offline AJ

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LG is raising washing machine prices due to new Trump tariff
« on: January 25, 2018, 08:49:37 AM »

Will higher prices for new appliances be good for appliance repair techs?


http://money.cnn.com/2018/01/24/news/companies/lg-raising-prices-washing-machine-tariff/index.html?iid=hp-stack-dom

Offline scrapiron

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Re: LG is raising washing machine prices due to new Trump tariff
« Reply #1 on: January 25, 2018, 09:05:55 AM »
That would depend on whether the prices of the replacement go up as well. It looks like the tariff only applies to the assembled appliances. So yeah, it may help the service business. It's also possible that with less price competition from imports Whirlpool will raise its prices due to lack of pricing competition. That would be a win as well for the service biz.

Offline scrapiron

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Re: LG is raising washing machine prices due to new Trump tariff
« Reply #2 on: January 25, 2018, 01:32:57 PM »
Just read the story on Wall Street Journal. 50% tariff on parts too.

Offline AJ

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Re: LG is raising washing machine prices due to new Trump tariff
« Reply #3 on: January 25, 2018, 01:58:15 PM »
Just read the story on Wall Street Journal. 50% tariff on parts too.

That can't be good for us.

Offline scrapiron

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Re: LG is raising washing machine prices due to new Trump tariff
« Reply #4 on: January 25, 2018, 02:31:57 PM »
Nope. NOT good. "It is also putting in place a 50% tariff on imported washer parts."
https://www.wsj.com/articles/lg-to-raise-prices-on-washers-after-trump-imposes-steep-tariffs-1516819656
« Last Edit: January 25, 2018, 02:32:43 PM by scrapiron »

Offline afterblast

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Re: LG is raising washing machine prices due to new Trump tariff
« Reply #5 on: January 25, 2018, 06:35:55 PM »
Seen a few articles about it and none of them mention a tax on parts.   Itís a 20% tarrif on the first 1.2 million imported washers, after that it rises to 50%..  couldnít find total number of imported washers for last year, but the total number of washers sold in 2017 was about 9.6 million... so basically lg and Samsung get to split 1/8th of the market for washers..  and their dryer sales will probably suffer as well since a lot of people buy them as a set....    whirlpool and GE both assemble washers in the US so theyíll get a free ride for a while...   the tariffs are set to expire after 2 years, but both Samsung and lg have announced that they plan on opening factories in the US to assemble them here which gets them around the tarrif...  probably will take them a year at least to make that happen so really the 2 year expiration date isnít all that important...     for what itís worth whirlpool sued them both for this in a trade dispute back in 2003 and won, tarrif were imposed on washers being imported from Korea...  both lg and Samsung responded by moving their factories to China...   whirlpool sued again in 2017 and won, sanctions were imposed against washers made in China and Samsung and lg moved their factories to Vietnam and thailand I think...     if anyone can link me to an article that says theyíre imposing tarrif a on parts (preferably not behind a paywall) Iíd appreciate it....      as far as how it affects us..  probably a marginally better time to be ge or whirlpool authorized vs Samsung or lg..   but also whirlpool announced theyíd be raising washer prices to counter rising materials costs... canít imagine ge wonít take the opportunity to do the same...   the more expensive they are the better chance someone would want to repair vs replace.. so Iím not to doom and gloom about the whole thing to be honest....  sorry about the wonky punctuation and grammar but that was a lot to type out on a cell phone... :D

Offline scrapiron

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Re: LG is raising washing machine prices due to new Trump tariff
« Reply #6 on: January 25, 2018, 10:06:42 PM »
Afterblast, sorry about that paywall thing. The line about the tariff on imported parts is from that article.
« Last Edit: January 25, 2018, 10:09:44 PM by scrapiron »

Offline Larry the applia

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Re: LG is raising washing machine prices due to new Trump tariff
« Reply #7 on: January 26, 2018, 07:46:58 PM »
Here is an article that mentions parts about 5 paragraphs down https://www.consumerreports.org/washing-machines/what-the-new-tariff-on-washing-machines-means-for-consumers/. Goldman Sachs, for instance, is forecasting an 8 percent to 20 percent increase in the price of a new washing machine in the next year, depending on how much of the tariff is passed on to consumers, according to CNBC. The tariff also includes machine parts, which could drive some costs higher for domestic manufacturers as well, the story says.
Larry Johnson
Shannons Appliance repair
Clarksburg, WV

Offline Thorning

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Re: LG is raising washing machine prices due to new Trump tariff
« Reply #8 on: March 13, 2018, 12:40:14 PM »
It will be interesting to see how much and how soon the US domestic companies raise their prices. It is a shame that corporate greed seems to govern the pricing of these items.I wonder if Whirlpool is seeing a tariff being put on the products now being built in Mexico ?

Offline dewitt8884

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Re: LG is raising washing machine prices due to new Trump tariff
« Reply #9 on: March 13, 2018, 07:05:05 PM »
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