April 23, 2024

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[THE INVESTOR] LG Electronics, which announced its plan to build a solar module factory in the United States, is currently facing hurdles in carrying out the project amid Washington’s move to slap heavy tariffs on Chinese parts, industry sources said on Aug. 21.

According to the sources, the US government declined a request to exclude Chinese parts needed by LG’s new module factory from the tariff list. Washington plans to slap a tariff worth US$16 billion on Chinese products amid the trade discord between the two economic giants.

The Korean consumer electronics giant claimed that such tariffs will adversely impact other companies seeking to build solar module factories in the United States as well.

LG currently plans to build a production line in Alabama, seeking to invest US$28 million and hire 400 employees.

The firm said China is virtually the only country where it can secure the parts needed to make products.

It lodged a protest against Washington’s move to slap tariffs on refrigerators and freezers.

The US vowed to slap 10 percent tariffs on US$200 billion worth of Chinese products, which also include some of LG’s refrigerators manufactured in China.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)