Prices remain a key concern for the manufacturer of South Korean devices LG Electronics (066570.K).
The company said that if President Trump’s general prices take effect on August 1, this will adjust prices and transfer a certain production to its factories in Mexico and the United States. LG produces its products worldwide, especially in South Korea, China and Vietnam.
On August 1, imports from South Korea face a 25%rate, while those in Vietnam face a tariff of 20%. It is estimated that imports from China are expected to face prices of around 50%, although this can change after the officials of the United States and Chinese meet in Sweden for the next series of commercial negotiations.
According to LG, consumers rushed to buy items in the first half to avoid prices. However, the networked net profit fell 3.1% in the second quarter as operating costs increased.
“Some consumers rushed to make purchases before prices take effect,” said a leader on the call for profits. “In the first half of 2025, we have reached growth of around 3% from one year to the next, greater than market demand with effective new products and sales operations, continuing to strengthen our presence on the market.”
But this traction in demand could point out a weakness to come in the coming months if commercial tensions increased again.
“An increase in the costs of the products led by the 50% rate on steel and reciprocal prices which should be applied in the second half of the year could result in greater uncertainties for the market price,” said the executive. “In addition, changes in the American government’s trade policies and weaken the feeling of consumers have questioned the prospects for demand for household appliances.”
This is not the first time that LG has been struggling with American protectionist policies. In 2018, during Trump’s first term, Washing prices have increased When Trump has targeted the industry with prices.
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