The U.S. International Trade Commission (ITC) begun an investigation into Whirlpool's petition for safeguard on Korean washers on June 5, according to the Korean trade ministry on June 14.
Whirpool claimed that imported washers of Samsung Electronics and LG Electronics are hurting domestic manufacturers while the two Korean home appliance makers disagree with their American rival, saying that U.S. consumers will eventually be victim to the measure.
Whirlpool filed a petition against Samsung and LG on May 31, arguing they have made circumventions by relocating their washer manufacturing facilities in Mexico and China to Vietnam and Thailand in a bid to avoid trade sanctions, The US-based home appliance manufacturer asked the ITC to impose anti-dumping duties on the washing machines in the case where that the number of imports exceeds a certain level.
"Samsung has invested more than US$27 billion in factories, R&D and design centers for decades in the US employing thousands of people, and we will continue to invest in our presence here," Samsung Electronics America said in a statement, denying the Whirlpool accusation. The company added, “Consumers buy Samsung washing machines because of our design and innovation, and now facing the potential for limited choices, higher prices and stunted innovation."
"Our exported washers have not caused serious damage to the US industry, and the safeguard measure will adversely affect the US consumers and retail industry," LG also said in a statement.
The ITC said it will hold a public hearing to hear the takes of related parties September 7 and judge whether Whirpool suffered an actual affection from the imported washers by October 5. The investigation can be extended for an additional 30 days. If the ITC finds that an actual injury occurred, the US President has the discretion to impose a remedy after receiving a recommendation from the ITC. However, a safeguard investigation does not require a finding of dumping.