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Haier-owned GE Appliances' prepares for a major hit from US tariffs
来源： 编辑：编辑部 发布：2018/08/14 10:57:44
FIVE per cent of products sold in the US by GE Appliances - now a unit of Qingdao Haier Co - are imported from China and face tariffs now or will do when new ones come into force, reports Bloomberg.
"The inflation caused by the trade war and the volatility in commodities prices has an impact on our effectiveness and profits. That's the same for all businesses." said GE Appliances vice president Li Pan.
In January, the US imposed duties of 50 per cent on washing machines. That was followed by a 25 per cent tariff on steel imports and 10 per cent on aluminum imports.
Top executives at GE Appliances, the American white goods unit that Haier acquired in 2016, are in discussions with the US government as part of a group representing appliance makers to remove affected products from the tariff list, he said.
Since acquiring Louisville, Kentucky-based GE Appliances from General Electric, the vast majority of Qingdao Haier products sold in the US have been manufactured there, said Mr Li. Still, GE Appliances has already raised prices of its products twice this year due to the wider effects of the trade war.
Haier is forging ahead with its international expansion. It expects overseas revenue, which made up 42 per cent of overall sales to accelerate. The company is open to acquisitions of companies for high-end appliances in Europe.
"Despite the geopolitical tensions, we feel that it's a bigger risk not to press on with our internationalisation strategy," Mr Li said. "This is a global trend, and it's the companies that do not internationalise that go extinct."
"The inflation caused by the trade war and the volatility in commodities prices has an impact on our effectiveness and profits. That's the same for all businesses." said GE Appliances vice president Li Pan.
In January, the US imposed duties of 50 per cent on washing machines. That was followed by a 25 per cent tariff on steel imports and 10 per cent on aluminum imports.
Top executives at GE Appliances, the American white goods unit that Haier acquired in 2016, are in discussions with the US government as part of a group representing appliance makers to remove affected products from the tariff list, he said.
Since acquiring Louisville, Kentucky-based GE Appliances from General Electric, the vast majority of Qingdao Haier products sold in the US have been manufactured there, said Mr Li. Still, GE Appliances has already raised prices of its products twice this year due to the wider effects of the trade war.
Haier is forging ahead with its international expansion. It expects overseas revenue, which made up 42 per cent of overall sales to accelerate. The company is open to acquisitions of companies for high-end appliances in Europe.
"Despite the geopolitical tensions, we feel that it's a bigger risk not to press on with our internationalisation strategy," Mr Li said. "This is a global trend, and it's the companies that do not internationalise that go extinct."