Whirlpool intensifying trade battle against Samsung, LG

25/12/2017 12:00 - 484 Views

U.S.-based appliance giant Whirlpool is intensifying its trade battle against Samsung Electronics and LG Electronics, calling for America's regulator to impose stricter safeguards on imported washers.

According to the Ministry of Trade, Industry and Energy, the United States Trade Representative (USTR) plans to hold a public hearing Jan. 3 to garner opinions from both parties over the U.S. International Trade Commission's (ITC) latest safeguard decision.

The U.S. trade authority last month announced its three-year tariff recommendation on washers exceeding a quota of 1.2 million. Under the recommendation, washers from the Korean companies will face a 50 percent tariff in the first year, reduced to 40 percent in the third year.

Whirlpool wants stronger measures, claiming the Korean appliance makers have shifted the location of manufacturing facilities for years to avoid anti-dumping tariffs. But the two Korean companies say the safeguard is unnecessary, as they are building washing machine plants in the U.S.

"Any tariff would raise prices, provide fewer product choices and impair job creation at our South Carolina factory," Samsung Electronics America said after the ITC recommendation.

"We continue to believe that no remedy is necessary since our South Carolina factory will begin producing washing machines in early 2018. We've already hired 350 people who are preparing our factory for production in January, and we are on track to fill another 150 manufacturing jobs in South Carolina by the end of the year."

The decision to build factories came amid growing economic pressure from U.S. President Donald Trump and the new U.S. administration's protectionist stance. LG's plant is being built in Tennessee.

Trump is expected to make his final decision on the ITC recommendation in February.

The Korean trade ministry is teaming up with the Ministry of Foreign Affairs and the two Korean companies to come up with countermeasures to the safeguard. They include bringing the case to the World Trade Organization (WTO).

"The safeguard recommendation from the ITC is a move to limit choices for U.S. customers and hinder efforts by Samsung and LG to boost employment by building factories there," Kang Seong-chun, an assistant deputy trade minister, said during a recent press briefing. "The government will actively explain our stance to officials from state governments and administrative bodies there."

Source: Korea Times