LG Electronics has a major problem with Trump Tariffs set to hit the business hard due to their exposure to the US market which accounts for large slabs of their consumer and B2b revenues.
LG Electronics sell significant volume of their TVs and appliances in the USA as well as air conditioners that are all manufactured outside of the US . Also set to be hit are their B2b businesses as well as their Energy and EV operations.Their Business Solutions B2B Division is also big in the US hospitality, digital signage, systems integration, healthcare, education, government, and industrial markets.
Currently LG has 19% of the US appliance market and are the second largest TV brand behind Samsung with the cost of LG products set to rise “significantly” according to LG management. 
As for manufacturing in the USA LG the numbers don’t stack up and building a new manufacturing facility in the US immediately would be challenging for the business claims Baik Sun-pil, the LG Electronics vice president.
“Currently, we have no TV manufacturing production facilities in the US. Due to free trade policies, most TV production is concentrated in Mexico, Southeast Asia, and China,” Baik told reporters, emphasizing that tariffs are not just LG’s problem alone.
Baik Sun-pil, the LG Electronics vice president admits that the issue is a major problem for LG who is now in fourth place behind Samsung TCL and Hisense in the TV market.
As for the building of new appliance and TV manufacturing plants in the USA which is what the Donald Trump administration wants Baik said building a TV factory in the US right now isn’t easy,” he added. “In order to produce a TV, components such as panels and system-on-chips must be sourced along with other materials from overseas, and setting up the necessary infrastructure in the US immediately is extremely challenging.”
As a result, LG is closely monitoring the tariff situation rather than making any abrupt decisions on a new plant decision or relocating production.
One option is shifting production to countries where tariffs are likely to be lower.
Currently LG operates a TV manufacturing plant in Reynosa, Mexico, serving the North American market.
LG Electronics accounts reveal payments to several subsidiaries including manufacturing plants in Mexico.
If Trump goes ahead with his plan to impose 25 percent tariffs on imports from Mexico — execution of which has been delayed until April 2 — it would make TVs from Mexico pricier, impacting LG’s profits.
Another issue for LG is the fact that Chinese brands are stripping TV market share away from LG whose OLED pricing is now being challenged.
At the briefing, Baik addressed the issue claiming that Chinese manufacturers still lag behind in core technological capabilities.
“While Chinese companies gained dominance in (hardware like) panels, they currently lack independent technology in SOCs and operating systems,” said Baik, noting Chinese companies rely on Korean and American OS solutions.
Last night unveiled its latest OLED and QNED televisions, featuring upgraded artificial intelligence and display technology, these TVs are set to be revealed in Australia shortly with retailers already briefed with 2025 stock set to hit stores this month.
LG who appears not to have an answer to the Chinese brands Hisense and TCL claim that they are pursuing a “dual track” strategy of focusing on both OLED and QNED TVs to secure leadership in the premium TV market.
It has maintained the top spot in OLED TVs for 12 consecutive years, according to market research firm Omdia, accounting for 52.4 percent of global OLED TV shipments last year.
Overnight Donald Trump has bought his tariff shutter down in Australia by rejecting Prime Minister Albanese’s request for a tariff exemption, a move that could see a major slump in steel and aluminium exports.
White House Press Secretary Karoline Leavitt delivered the bad news for Australia, claiming that President Trump had considered the Albanese Federal Government request claiming that Australia will not be spared the 25% tariff on steel and aluminium imports.
Donald Trump had previously said he would consider exemptions for Australia over the 25 per cent tariffs after a February phone call with Anthony Albanese. However White House Press Secretary Karoline Leavitt told Australian media outlets on Wednesday (AEDT): “He considered it and considered against it. There will be no exemptions.”
Albanese initially claimed that Donald Trump had previously said he would consider exemptions for Australia over the 25 per cent tariffs after a February phone call.
The big question now is whether the leader of the Opposition Peter Dutton could have a better chance of winning over Trump if elected in an upcoming Federal Election.
White House senior counsellor for trade and manufacturing Peter Navarro later said Australia was ‘killing’ America’s aluminium industry.
