LG Electronics said on April 29 that it is proceeding with a refund process related to tariffs previously paid to the United States.
Song Ji-ho, head of the Trade and Tariff Office, said during a first-quarter earnings conference call that “LG Electronics paid import tariffs and therefore believes it qualifies for refunds, and is proceeding with related procedures in accordance with U.S. government guidelines.” He added that “if deemed a valid refund application following eligibility review by local customs authorities, payment is specified to be made within 60 to 90 days.”
He said, “Cases requiring detailed review may take additional time, so it is difficult to definitively comment on the expected refund amount and timing,” adding that the company will continue to communicate with the market as there are further developments.
LG Electronics said that despite expectations of increased tariff burdens due to additional tariffs imposed under the Trump administration in the United States, the overall impact on performance is expected to be limited due to preemptive measures such as operating production bases in North America.
Yoo Jong-in, head of management at the HS division, said, “While tariff burdens are expected to increase due to the latest policy changes, the impact on overall performance will be limited as we have already established and are operating production bases in North America.”
He added, “With long experience responding to trade issues, we have sufficient systems and capacity in place,” noting that the company will continue to review various measures, including flexible product mix and pricing strategies, supply chain optimization and local sourcing options, to minimize additional tariff impacts.
Yoo also said, “Although the Trump administration imposed a 25% tariff on finished products including steel, aluminum and copper, and excluded Mexico from duty-free exceptions, this situation equally applies to local companies producing in Mexico and exporting to the United States,” adding that discussions on expanding production in Mexico will be determined after consultations under the U.S.-Mexico-Canada Agreement.