Tariffs Prompt LG to Rethink Prices and Production Plans

LG Electronics announced that it is considering price adjustments across select product lines and evaluating the potential relocation of certain home appliance manufacturing operations to the United States in response to the possibility of new U.S. tariffs. Speaking during the company’s post-earnings conference call, Senior Vice President Kim I-kueon stated, “We are optimizing our global production footprint and, in parallel, exploring price revisions through close coordination with our distribution partners as a proactive measure.”

The company is assessing the expansion of its Tennessee-based facility to include manufacturing of home appliances such as washers and dryers. According to Kim, this plant could support nearly 20% of LG’s total U.S. home appliance sales.

Kim noted that if the proposed tariffs are implemented, they could have a significant impact beginning in the third quarter. In anticipation, LG has prepared a roadmap to implement pricing strategies aimed at mitigating potential disruptions.

Regarding the postponed initial public offering of LG’s Indian subsidiary, Kim emphasized that the company will take a measured approach, carefully evaluating market conditions to determine the most strategic timing for the IPO.