SEOUL, June 13 (AJP) - Samsung Electronics and LG Electronics are bracing for financial and operational turbulence after the Trump administration announced it would impose 50 percent tariffs on steel-derived products used in home appliances.
The U.S. Commerce Department published the sweeping list of affected goods in the Federal Register, with implementation set for June 23. The targeted products include refrigerators, washing machines, dryers, dishwashers, freezers, stoves, ranges, and ovens — cornerstones of both companies’ North American appliance businesses.
While Samsung and LG both operate manufacturing plants in the United States, the majority of their appliances are produced in South Korea, Vietnam, and Mexico before being shipped to American consumers. The new tariffs, therefore, hit at the heart of their export-heavy operations.
Company officials said they are conducting detailed impact assessments and reviewing a range of strategic responses, from price hikes to shifts in production geography.
Steel is a critical component in large appliances, meaning the tariffs are likely to increase production costs significantly.
LG, in its first-quarter earnings call, disclosed that it had already mapped out contingency plans, including cost-saving measures and potential consumer price increases.
Samsung, for its part, signaled during its latest earnings call that it would ramp up its portfolio of premium appliances and explore redistributing production volumes across its global manufacturing bases to cushion the blow of the tariffs.
Trump, who has championed tariffs as a tool to bring manufacturing back to American soil, pointed to Samsung’s investment intentions as a victory for his administration’s trade strategy. In April, he claimed the company would not have considered building large-scale U.S. facilities without tariff pressure.
LG is moving to expand its domestic footprint, gradually shifting production of washers and dryers to its Tennessee plant, which currently accounts for about 20 percent of its U.S. appliance sales. CEO Cho Joo-wan has described U.S.-based production as a "last resort," noting that the company would first explore other levers — such as shifting manufacturing locations and adjusting pricing.
Both companies are expected to continue leveraging their global "swing" production systems — networks that allow them to adapt rapidly to changing trade conditions.
reporter
Candice Kim
candicekim1121@ajupress.com
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