Haier sees costs spike at GE arm

SHANGHAI, (Reuters) – China’s Haier Group said rising steel prices amid hefty US import tariffs was driving up costs for its business in America, and warned that consumers stood most to lose from a mounting trade spat between the world’s top two economies.

Louisville, Kentucky-headquartered GE Appliances, which Haier bought in 2016 from General Electric, has already raised its prices twice this year to cope with rising costs, said Haier’s overseas managing director, Li Pan.

“Currently, the challenge is inflation, not only from steel but also the other commodities,” he told Reuters.

“It has hit our bottom line, not only inflation but also the whole environment is getting tougher and tougher, so to mitigate that impact, actually, GE Appliances increased their retail price twice this year.”

Haier’s comments add to a growing clamor of voices from companies worldwide warning about the impact of US metal tariffs. Home appliance maker Whirlpool and automakers such as General Motors and Ford have all flagged that steel costs have hit, or could impact, their bottom lines.

Read more...