Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Panel finds U.S. washing machine makers hurt by LG, Samsung imports

Published 10/05/2017, 02:48 PM
© Reuters. Washing machine parts move along a conveyor belt waiting to be assembled  at a Whirlpool plant in Clyde
SWVk
-
WHR
-
066570
-
005930
-
1165
-

By David Lawder

WASHINGTON (Reuters) - The U.S. International Trade Commission found on Thursday that surging imports of large residential washing machines harmed domestic producers, a major step toward the imposition of broad duties or quotas on foreign-made Samsung- and LG-brand machines.

The case, brought by U.S. appliance giant Whirlpool Corp (N:WHR), sought "global safeguard" restrictions to stop South Korean rivals Samsung Electronics Co Ltd (KS:005930) and LG Electronics Inc (KS:066570) from flooding the U.S. market with cheaper washers.

The commission, voting 4-0 in favor of a finding that the large number of imports was hurting domestic manufacturers, will recommend remedies by Dec. 4 to President Donald Trump, who is expected to make a final decision by early next year.

A public hearing on possible remedies has been scheduled for Oct. 19, an ITC spokeswoman said.

The panel did not find that washers made specifically in South Korea, already subject to anti-dumping duties, were responsible for harming U.S. manufacturers.

Whirlpool Chairman Jeff Fettig said the decision was another vindication in the company's years-long anti-dumping battle with Samsung and LG, in which he had accused them of moving production around the world in order to avoid U.S. duties.

"This type of corrective action will create U.S. manufacturing jobs," Fettig said.

Samsung and LG both issued statements saying that import curbs would hurt consumers by raising prices, limiting choice and stifling innovation.

They emphasized their own investments worth hundreds of millions of dollars in new appliance factories in the United States, both announced since Trump took office in January.

LG accused Whirlpool of using U.S. trade laws to restrain an innovative competitor.

"Soon, competition in the washer market will not be about domestic vs. foreign production," LG said its statement. "It will be about competition among washers made in the United States, in Ohio, Kentucky, Tennessee and South Carolina."

The washer case represents a dilemma for Trump and his "America First" trade agenda, potentially putting him in the position of punishing companies that have pledged investments to bring manufacturing jobs to the United States.

The ITC's decision is the second in two weeks that the panel has found injury in a "global safeguard" case, after ruling that cheap solar panel imports from China and other countries were hurting domestic producers SolarWorld America (F:SWVKk) and Suniva Inc, majority-owned by China's Shunfeng International Clean Energy Ltd (HK:1165).

The washer and solar cases were filed under Section 201 of the Trade Act of 1974, a statute that hasn't been invoked since 2002, when George W. Bush imposed broad temporary tariffs on steel imports.

© Reuters. Washing machine parts move along a conveyor belt waiting to be assembled  at a Whirlpool plant in Clyde

The steel duties were withdrawn 21 months later after the World Trade Organization found the action a violation of U.S. tariff-rate commitments.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.