Commerce Dept to Continue Imposing Duties on Samsung, LG Washing Machines--Update
10 December 2016 - 10:41AM
Dow Jones News
By Andrew Tangel
The U.S. Department of Commerce on Friday said it would continue
imposing duties on washing machines built in China by Samsung
Electronics Co. and LG Electronics Inc.
The federal agency's decision stems from a December 2015
Whirlpool Corp. complaint against its South Korean rivals claiming
the companies sold their washing machines in the U.S. for less than
they cost to produce.
On Friday, the U.S. Department of Commerce said it would impose
antidumping margins of 52.51% for Samsung and 32.12% for LG.
Whirlpool Chairman and Chief Executive Jeff Fettig said the
department's ruling marked "an important victory in the continuing
efforts to hold companies accountable when they systematically
violate trade laws to gain a competitive advantage."
Whirlpool and LG both acknowledged the tariffs were unlikely to
have much of an effect. Whirlpool said LG and Samsung had already
shifted production for U.S.-bound washing machines out of China,
which LG confirmed. Samsung didn't immediately respond to a request
for comment.
LG said the duties were too high and were the result of a "wacky
-- and possibly illegal -- margin calculation" that overvalued
certain washing-machine components.
Samsung also criticized the agency's calculations, but expressed
satisfaction with the department's decision not to impose
retroactive tariffs for allegedly stockpiling washing machines
ahead of this ruling.
A Department of Commerce spokesman didn't respond to the
companies' criticisms.
The decision comes after a July preliminary decision in which
federal authorities began charging duties amounting to 111% on
Samsung's washers and 50% on LG's models.
It marks the latest in a yearslong skirmish between Benton
Harbor, Mich.-based appliance manufacturer, the world's largest,
and its South Korean rivals. Whirlpool has also claimed its rivals
have benefited from South Korean government subsidies in violation
of trade rules.
Whirlpool's complaint in the China antidumping case, which was
filed in December 2015, covers large residential washers, along
with certain parts, made by Samsung and LG in China.
Friday's decision isn't the final step. The U.S. International
Trade Commission is expected to weigh in next month.
Whirlpool shares rose about 1% to $173.73 on Friday.
Write to Andrew Tangel at Andrew.Tangel@wsj.com
(END) Dow Jones Newswires
December 09, 2016 18:26 ET (23:26 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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