Was it weird to you that when the Trump Administration announced a tariff on both solar panels and washing machines that the tariff on solar panels got the most publicity? Wouldn't most people be impacted by rising prices on washing machines?
We're about to find out. LG Electronics says its laundry machines will get more expensive due to the tariff.
I am a free market guy and instinctly oppose these tariff hikes. But note THIS sentence in the story linked in the previous paragraph:
LG said a new $250 million washer factory that's being built in Clarksville, Tennessee should help ease some pressure, since those washers won't be subject to the tariff.
So...does that mean the tariff is working? Or does that give you the impression that the tariff is just an excuse to raise prices?
But consumers should be prepared for prices to go up by 15% to 20%, said Dinesh Kithany, asmart home and appliances analyst with IHS Markit. That could translate to washing machines that are $70 to $100 more expensive, he said.
Because washers and dryers are typically sold as a pair, prices for both appliances could go up.
Of course, a competitor could take advantage of the situation by announcing a sale in the next few weeks. Which would pressure LG prices DOWN. Which, when I think about, is VERY free-market.