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LG Electronics CEO William Cho said the company may consider raising the prices of home appliances sold in the United States if tariffs imposed by Washington exceed manageable levels.
“If the tariff hike surpasses what we can absorb, we’ll have to consider price increases for appliances [bound for the United States],” Cho told reporters at Seoul National University’s Gwanak Campus on Thursday, where he delivered a guest lecture.
His remarks came after a first quarter earnings call earlier the same day, during which LG said it already has a full road map in place, including potential pricing strategies, to cope with the impact of U.S. tariffs.
Cho emphasized that LG would first try to offset the impact through operational efficiencies.
“We will do everything we can to absorb the costs through internal efforts,” he said.
LG manufactures washing machines and dryers at its Tennessee plant in the United States, while refrigerators, cooking appliances and televisions are produced in Mexico. Refrigerators and washing machines are also made in Vietnam. The United States currently imposes a basic 10 percent tariff on imports globally but has yet to implement reciprocal tariffs based on country of origin.
The home appliances company is reportedly weighing several responses in case full-scale reciprocal tariffs materialize. Options include expanding its U.S. manufacturing presence, increasing prices and leveraging its global production network to shift manufacturing locations.
When asked about the possibility of building additional plants in the United States, Cho said, “Establishing a new production base in the U.S. would be our last resort. We would first need to pursue alternative production sites and consider price increases in a step-by-step scenario.”
Cho also said LG expects the full impact of the tariffs to emerge in the second quarter.
“There wasn’t much [front-loading] in Q1,” he said, referring to the practice of stockpiling goods before a tariff hike. “Whether it affects us negatively or positively, we’ll start to see the real effects from the second quarter.”
![LG Electronics CEO gives a lecture to students at Seoul National University’s Department of Electrical and Computer Engineering at the university's Gwanak Campus in southern Seoul on April 24. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/04/25/9bfacfbf-b5e4-446d-838f-ada4d1b203b9.jpg)
LG is also preparing for an initial public offering (IPO) of its Indian subsidiary. The company recently completed revisions to its IPO filing and is considering when to submit it.
“We’re not in a rush,” Cho said. “It might be June, or later. Given the global uncertainties, we want to wait a few more months. It’s not about raising a large sum of money. We need to make sure our company is properly valued and shareholder interests are reflected.”
Cho gave a lecture to 200 students at Seoul National University’s Department of Electrical and Computer Engineering, titled “Innovation in experience through technology,” that day.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK HAE-LEE [kim.juyeon2@joongang.co.kr]
Lg May Raise Appliance Prices In U.s. In Response To Tariffs
LG Electronics CEO William Cho talks to reporters ahead of his lecture to students at Seoul National University's Gwanak Campus on April 24. [YONHAP]
LG Electronics CEO William Cho said the company may consider raising the prices of home appliances sold in the United States if tariffs imposed by Washington exceed manageable levels.
“If the tariff hike surpasses what we can absorb, we’ll have to consider price increases for appliances [bound for the United States],” Cho told reporters at Seoul National University’s Gwanak Campus on Thursday, where he delivered a guest lecture.
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Cho emphasized that LG would first try to offset the impact through operational efficiencies.
“We will do everything we can to absorb the costs through internal efforts,” he said.
LG manufactures washing machines and dryers at its Tennessee plant in the United States, while refrigerators, cooking appliances and televisions are produced in Mexico. Refrigerators and washing machines are also made in Vietnam. The United States currently imposes a basic 10 percent tariff on imports globally but has yet to implement reciprocal tariffs based on country of origin.
The home appliances company is reportedly weighing several responses in case full-scale reciprocal tariffs materialize. Options include expanding its U.S. manufacturing presence, increasing prices and leveraging its global production network to shift manufacturing locations.
When asked about the possibility of building additional plants in the United States, Cho said, “Establishing a new production base in the U.S. would be our last resort. We would first need to pursue alternative production sites and consider price increases in a step-by-step scenario.”
Cho also said LG expects the full impact of the tariffs to emerge in the second quarter.
“There wasn’t much [front-loading] in Q1,” he said, referring to the practice of stockpiling goods before a tariff hike. “Whether it affects us negatively or positively, we’ll start to see the real effects from the second quarter.”
LG Electronics CEO gives a lecture to students at Seoul National University’s Department of Electrical and Computer Engineering at the university's Gwanak Campus in southern Seoul on April 24. [YONHAP]
LG is also preparing for an initial public offering (IPO) of its Indian subsidiary. The company recently completed revisions to its IPO filing and is considering when to submit it.
“We’re not in a rush,” Cho said. “It might be June, or later. Given the global uncertainties, we want to wait a few more months. It’s not about raising a large sum of money. We need to make sure our company is properly valued and shareholder interests are reflected.”
Cho gave a lecture to 200 students at Seoul National University’s Department of Electrical and Computer Engineering, titled “Innovation in experience through technology,” that day.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK HAE-LEE [kim.juyeon2@joongang.co.kr]
