Freedonia Group Analyst Weighs In on the Impact of New Tariffs on Clothes Washers

News provided by

Mar 19, 2018, 01:15 ET

CLEVELAND, March 19, 2018 /PRNewswire/ -- In January 2018, President Trump announced new tariffs on imported washing machines and solar panels, intending to increase US manufacturing. The effects of this tariff, both positive and negative, were felt shortly afterward.

"In the case of washing machines, the tariff largely impacts LG Electronics and Samsung Electronics, two leading suppliers whose imported washing machines, mostly from China, have been competing with US-based Whirlpool for market share," says Freedonia analyst Kyle Peters. "The tariff will ensure that LG and Samsung shift, and keep, washing machine production in the US."

Even before the tariff, both firms were investing in US production: Samsung's plant in South Carolina started producing washing machines just weeks before the tariff was formally announced, while LG's plant in Tennessee will begin operation sometime in 2018. Anticipating a boost to its own sales as LG and Samsung face added costs, Whirlpool intends to add 200 jobs at its clothes washer plant in Clyde, Ohio.

While investment in US production is good for job creation, consumers will feel the brunt of the tariff in their wallets. Tariffs generally cause the affected companies to pass along some of the added cost to the consumer. LG informed retailers that it was planning to raise prices, since the company will spend much of 2018 importing washing machines while its US plant finishes construction.

"In the long run, the tariff will succeed in boosting clothes washer production in the US, but it will also result in washers being more expensive," concludes Peters.

For more information on this, including an expanded discussion on how the tariff will impact demand for and production of clothes washers, see Freedonia's new Clothes Washers & Dryers in the US study.

https://www.freedoniagroup.com/industry-study/clothes-washers-dryers-in-the-us-3620.htm

About The Freedonia Group, a division of MarketResearch.com – The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Additional Consumer Goods studies can be purchased at https://www.freedoniagroup.com/, www.marketresearch.com and www.profound.com.

Press Contact:
Corinne Gangloff
+1 440.684.9600
[email protected]

SOURCE The Freedonia Group