CLEVELAND, July 17, 2018 /PRNewswire/ — Yesterday’s Wall Street Journal includes an article that shows just how complicated tariffs can be and the significant disruption they can cause on an industry. Whirlpool was an early proponent of tariffs, petitioning the Trump Administration in January 2018 to levy tariffs on clothes washers in response to what Whirlpool believed to be unfair practices by its main competitors, South Korea’s LG Electronics and Samsung Electronics (Electrolux was also affected). Whirlpool initially benefited from this move as LG, Samsung, and Electrolux were forced to increase the price of their washers sold in the US to offset the added cost of the tariff.
However, since that time Whirlpool has faced a series of challenges. Subsequent tariffs imposed on aluminum and steel, essential raw materials for the manufacture of clothes washers, have offset the initial benefits that Whirlpool and Haier’s GE Appliances division experienced following the tariff on clothes washers. Coupled with softening US demand through the first half of 2018, the US market for clothes washers is poised to register its first annual decline since 2012.
As projected in The Freedonia Group’s Clothes Washers & Dryers in the US industry study, tariffs are just one piece of a much larger puzzle that will impact US demand for clothes washers. The US has enjoyed 5 years of steady demand gains as the nation recovered from the Great Recession. However, according to Freedonia Analyst Kyle Peters, “clothes washer sales are expected to increase less than one percent annually between 2017 and 2022. Challenges arising from US imposed tariffs will definitely be a factor in slowing sales, as will rising appliance prices and an expected slowdown in replacement activity.”
Still, opportunities for growth will continue to be favorable in certain product segments. Smart appliance offerings, for example, are expected to be strong, as will sales of increasingly efficient washers will also experience better demand opportunities.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group
