Whirlpool calls for 50% tariffs on Samsung, LG washers

2017.10.18 16:14:11 | 2017.10.18 17:03:11

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U.S. appliance maker Whirlpool Corp. has demanded a 50 percent tariff on South Korean washers over the next three years, the latest in a series of protectionist actions against Korean companies taken by American businesses capitalizing on the ¡°America First¡± policy under the Donald Trump administration.

According to South Korea¡¯s trade ministry and the U.S. International Trade Commission (ITC) on Wednesday, Whirlpool¡¯s petition against Samsung Electronics Co. and LG Electronics Inc. came after an ITC ruling earlier this month that rising imports of washing machines were harming American producers. The ITC will hold a hearing on Thursday (local time) and send its recommendation to the president by Dec. 4.

The Michigan-based company first filed a complaint against the Korean firms in May under a rarely-used safeguard provision. Safeguards, or temporary import restrictions, are different from other typical protectionist measures as they give the president a much broader authority to impose trade barriers, such as a sweeping tariff.

Whirlpool claimed that the two Korean companies were dumping their washers at unlawfully low prices and that a tariff rate of over 50 percent would have to be imposed to help U.S. manufacturers compete with their foreign rivals.

The appliance maker said washing machine parts should also be subject to 50-percent tariffs and quota restrictions to prevent the Korean firms from simply assembling parts in the U.S.

Earlier this month the Korean government and related industry officials discussed ways to soften the blow of U.S. safeguards. They plan to make the case that washer parts necessary for production in U.S. plants and premium washers not made by American companies should be exempt from the safeguard measures.

Samsung Electronics is building a home appliances factory in South Carolina, which is expected to start operations in January. LG Electronics¡¯ factory in Tennessee is due for completion in early 2019.

By Ko Jae-man and Kim Hyo-jin

[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]