LG Electronics is taking significant steps to address the potential impact of U.S. tariffs on its business, exploring strategies to safeguard its operations and maintain competitiveness in key markets. 

During a post-earnings conference call, Senior Vice President Kim I-kueon announced that the company is not only considering price hikes for certain products but is also reviewing plans to relocate the production of home appliances to the United States. This proactive approach comes as the South Korean manufacturer navigates a challenging landscape marked by global trade uncertainties.

Kim revealed that LG is optimizing its production strategy, with its facility in Tennessee playing a pivotal role. The factory, which already handles the production of washers and dryers for the U.S. market, could meet nearly 20% of the company’s total home appliance sales in the region if expanded. 

This move would help LG mitigate the financial strain of U.S. tariffs while reinforcing its foothold in a highly competitive market. According to Kim, discussions with distribution channels are ongoing, as LG evaluates price adjustments as part of its tariff-response roadmap.

Although President Donald Trump has temporarily delayed implementing a series of tariffs until July, LG anticipates these measures will begin to significantly impact its business starting in the third quarter of 2025. To prepare for this, the company is closely monitoring the situation while developing contingency plans. By balancing cost-management strategies such as price adjustments and localization of production, LG aims to absorb the brunt of the tariffs without excessively burdening consumers or sacrificing market share.

In addition to its efforts to navigate trade challenges in the U.S., LG is exercising caution regarding the initial public offering (IPO) of its Indian unit. Kim emphasized that the timing of the IPO would be carefully determined to maximize market opportunities and shareholder value. This deliberate approach highlights LG's long-term perspective in strengthening its global business portfolio.

The company’s recent financial performance reflects a proactive stance in uncertain times. While LG's leadership focuses on mitigating external challenges, its Tennessee plant exemplifies a strategic asset in its operational framework. Alongside plans to expand domestic manufacturing, LG remains committed to delivering innovation and value to consumers. 

These efforts underscore its adaptability and forward-thinking approach, ensuring resilience in a fluctuating economic environment. By addressing tariff-related risks while advancing its global strategies, LG is positioning itself as a dynamic player in the evolving landscape of consumer electronics and appliances.