how asian giants can counter trump's washing machine tariff - home appliances manufacturers in china
President Donald Trump's tariffs on imported washing machines, designed to stop cheap appliances from South Korean and Chinese companies from flowing into the US market, could end up being cleaned.
Target companies such as Korea
LG Electronics Headquarters
China Midea Group Co. , Ltd.
By raising prices or re-taxing, import taxes of up to 50% can be avoided
Transfer of production to countries exempt from new taxes.
Several Asian home appliance manufacturers such as Samsung Electronics Co.
China Qingdao Haier Co. , Ltd. , have U. S.
As companies increase production there, factories that can help ease the conflict.
"Negative impact on industries outside the USS.
"Because the company has various strategies to deal with this situation, it may be very small," said Yuanda Securities Co. , Ltd . "
Liu Liye, an analyst in Taipei.
"They can pass on the cost increase to the consumer or ship the parts to the US. S.
Or final assembly in neighboring countries to avoid tariffs.
Although Trump's first major trade move as president was designed to protect $5. 1 billion U. S.
Judging from the cheap foreign competition in the washing machine market, American consumers may be the most affected.
Workers could also be hurt if foreign appliance manufacturers cut production plans in the United StatesS.
This decision is a "huge loss" for the United States ". S.
Samsung said on its website that workers and consumers.
It says the duty on the washing machine is a tax that will allow everyone to pay more.
LG saidin issued a statement that the ramp was blocked as a result
Its new factory and threatens the new U. S. S. jobs.
A representative of Qingdao Haier and the United States did not respond to requests for comment.
The market is not so responsive.
LG Electronics closed at 0 in Seoul.
5%, erased the previous loss of up to 5%.
Advanced Samsung Electronics 1. 9 percent.
Haier, Qingdao, fell 2 in China.
1% and the United States group climbed 0. 9 percent.
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After the International Trade Commission raised import tariffs in November, Whirlpool
Has the largest share of washing machines in the United States. S.
Samsung and LG Electronics are accused of selling the appliances in the United States. S. below fair-market value. The U. S.
Has been chasing home appliance manufacturers since at least 2011, accusing these companies of repeatedly shifting production to low
As part of a radical pricing strategy, cost countries including Thailand and Vietnam.
While LG and Samsung's recent tariff targets have changed, this also applies to companies in non-preferred trading partner countries, including China.
Both LG and Samsung have options.
They can avoid import taxes by increasing production.
Margin premium washers in their new USS. -based plants.
LG is building a washing machine
The first machine factory in Tennessee, USA. S. -
Headquartered in production facilities, may be completed in early 2019. Samsung’s home-
South Carolina Electric Appliance Factory, which started production earlier this month, may produce 1 million washing machines in 2018.
Chinese manufacturers dominate the global production of washing machines, both in their own brands and other brands of parts suppliers, in recent years with the rise in labor costs in China, their manufacturing base is also diversified.
They also acquired some western home appliance brands such as Fisher & Paykel and Clivet SpA to boost sales of high-end goods with lower margins than their own
Cost core brand.
Midea, the world's largest electrical manufacturer, has factories in India and Brazil. -
Both countries are exempt from the new washing machine tax. -
Rival Qingdao Haier bought Louis, Kentucky.
Buy GE Appliances for $5.
2016 6 billion.
GE Appliances 900-
Kerry facilities in the United StatesS.
It will help Qingdao Haier "readjust its supply chain in the United States ". S.
The market will be very hot if needed . "
Analyst at DBS Vickers.
"If the tariffs really hurt them, Haier can make washing machines in the United StatesS.
Take advantage of facilities owned by GE appliances. ”—