Result from Conflict with China?

The U.S. government decided to charge customs duties on the washing machines produced in China by Samsung Electronics and LG Electronics.
The U.S. government decided to charge customs duties on the washing machines produced in China by Samsung Electronics and LG Electronics.

 

The Will Street Journal reported on July 20 (local time) the U.S. government decided to charge customs duties on the washing machines produced in China by Samsung Electronics and LG Electronics. It means that the U.S. government sided with the US-based. Whirlpool Corporation’s allegations last year that Samsung Electronics and LG Electronics are avoiding customs duties by moving production bases to China.

Samsung and LG washing machines are priced at between US$500 and US$1,000 dollars in the U.S. With the latest decision, Samsung and LG washing machines will be subjected to a duty of 111% and 50%, respectively.

In its preliminary report on the same day, the U.S. Commerce Department also said it found a sharp increase of imported products from Samsung Electronics in a relatively short period, which would be a result from the anticipation of a possible imposition of anti-dumping duties. According to the report, U.S. Customs and Border Protection (CBP) will retroactively impose duties on Samsung Washing machines to 90 days before the announcement of the Commerce Department’s report.

Four years ago, the U.S. decided to impose ant-dumping duties on imported washing machines produced in Korea and Mexico. Though, Whirlpool alleged that Samsung and LG had avoided the duties by moving their production bases to China. 

About the recent decision, LG expressed its opposition, saying it will make objections to the order in advance to the final determination of the Commerce Department in early December. LG insists that the methods used to determine and calculate the duties are erroneous and an unexpectedly high duty is imposed as a result. LG also said that along with it, it is preparing to submit an objection to the U.S. International Trade Commission.

Samsung also expressed its position that the company “has never engaged in unlawful trade practices,” and hence the current decision is very “disappointing,” through a spokesperson of the company. It added the duties will result in higher price burden on consumers for their buying home appliances and decrease the competitive power of the U.S. market.

 

 

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