LG Electronics is evaluating the potential expansion of its household appliance production in the United States, with a particular focus on washing machines and dryers. This strategic consideration hinges on the results of the upcoming US presidential election in November and the evolving trade environment.
During a press meeting at LG Electronics’ factory in Clarksville, Tennessee, on May 31, Song Chang-woo, the head of the Tennessee facility, indicated that the company is formulating different strategies based on the potential re-election of former President Donald Trump or the continuation of President Joe Biden’s administration.
Song addressed Trump’s campaign promise of a 10% universal tariff, stating, “From our perspective, the trade policies advocated by Trump are not favorable. However, it is also not easy under Biden, who continues to update Section 301 trade tariffs against China, indicating that the US-China trade environment remains challenging.”
Currently, LG’s Tennessee plant primarily manufactures refrigerators and TVs. However, with ample space available for further expansion, LG Electronics is considering scaling up production to include washing machines, dryers, and potentially other products. This decision will be influenced by the emergence of new trade issues.
The company’s strategic planning underscores the complexities of navigating the US trade policies, regardless of the election outcome. Both administrations have posed challenges: Trump’s proposed tariffs could impact production costs, while Biden’s ongoing trade tariffs against China continue to complicate the trade environment.
By potentially expanding its production capabilities in the US, LG Electronics aims to mitigate risks associated with fluctuating trade policies and ensure a stable supply chain for its products. This move could also bolster its competitive edge in the American market, providing a buffer against international trade disruptions.
As the US presidential election approaches, LG Electronics is closely monitoring the political landscape and preparing to adapt its manufacturing strategies accordingly. The company’s proactive approach reflects its commitment to maintaining operational flexibility and sustaining growth in a complex global trade environment.
