Tariffs remain a key concern for South Korean appliance maker LG Electronics (066570.KS).
The company said that if President Trump’s blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam.
On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks.
According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company’s net profit fell 3.1% in Q2 as operating costs increased.
“Some consumers have been rushing to make purchases before the tariffs take effect,” an executive said on the earnings call. “In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence.”
But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again.
“A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price,” the executive said. “Additionally, shifts in the US government’s trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances.”
This isn’t the first time LG has grappled with US protectionist policies. In 2018, during Trump’s first term, washing machine prices rose when Trump targeted the industry with tariffs.