Seoul [South Korea], June 13 (ANI): The Trump administration’s expansion of steel tariffs to include household appliances with steel components has raised significant concerns for South Korean electronics giants Samsung Electronics and LG Electronics, according to reports by Korea Herald.
The Department of Commerce announced on Thursday that a 50 per cent steel duty will apply to “steel-derivative products” starting June 23. This includes a wide range of appliances such as refrigerator-freezers, dryers, washing machines, dishwashers, freezers, cooking stoves, ranges, ovens, food waste disposals, and welded wire racks.
The tariffs will be calculated based on the value of the steel content in each imported item, meaning higher steel content will result in higher duties.
This decision follows a week after President Trump increased tariffs on imported steel and aluminium to 50 per cent, up from the initial 25 per cent announced in March.
The new tariffs are expected to heavily impact Samsung and LG, as they sell a substantial volume of home appliances in the U.S. market.
Although both companies have U.S. manufacturing facilities (Samsung in Newberry, South Carolina, and LG in Clarksville, Tennessee, both established during Trump’s first term in response to his tariff policies), a significant portion of their appliances sold in the U.S. are manufactured overseas, including in South Korea and Mexico. Much of the steel used is also sourced internationally.
Both Samsung and LG are considering shifting some production in Mexico from their U.S. plants in light of these escalated tariffs.
Analysts warn that these tariffs could increase production costs, which companies may be forced to pass on to consumers through higher prices.
With Samsung and LG collectively holding approximately 40 percent of the U.S. home appliance market, according to Traqline, price increases could undermine their competitiveness and reduce sales in the crucial US market. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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