The South Korean government on Wednesday discussed countermeasures including diplomatic endeavors to mitigate U.S. safeguard actions on Korean washers and plan to take the matter to the World Trade Organization should Washington decide to perpetrate the harsh recommended remedies.

The Ministry of Trade, Industry and Energy met with local washer producers on Wednesday to come up with a joint plan to respond to the decision by the U.S trade authority.

The U.S. International Trade Commission (ITC) on Tuesday (local time) accepted a case under the Section 201 of the 1974 U.S. Trade Act that had not been invoked since 2002 put forward by U.S. washer maker Whirlpool and recommended a graduated tariff rate on imports of large residential Washington machines above 1.2 million units over the next three years from 50 percent in the first year to 40 percent in the third year.

The commission also unanimously proposed a separate set of levies and quota limits on imports of covered parts of large residential washers, slapping 50 percent tariff rate on top of current duties on any inflow beyond 50,000 units in the first year with the cap on quota increasing by 20,000 units in the following two years on gradual reduced rate to 40 percent.

President U.S. Donald Trump who vowed to reinstate the Section 201 and other import barriers to protect domestic industry must decide on whether to go by the recommendation or moderate the remedies by Dec. 4.

Samsung and LG as well as lawmakers in South Carolina and Tennessee where the two Korean makers are building factories for home appliances are contesting that production can be hurt if they do not get sufficient parts.

They are also arguing on potential damages to U.S. consumers due to spike in prices and restriction in product choices as well as on U.S. jobs and retailers.

Shares of Samsung Electronics closed Tuesday at 2,798,000 won, up 1.23 percent, and those of LG Electronics finished at 95,900 won, up 3.23 percent from the previous session.

By Ko Jae-man and Choi Mira

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