The U.S. Department of Commerce 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 had determined the companies had indeed dumped washers from China into the U.S. and it imposed antidumping margins of 52.51% for Samsung and 32.12% for LG.

Whirlpool Chairman and Chief Executive Jeff Fettig said in a statement 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."

In a statement, LG said the rates "are much lower than the preliminary determination but still too high." It said the rates were the result of an incorrect margin-calculation methodology that, in part, overvalued certain washing-machine components.

Samsung didn't immediately respond to requests for comment.

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 the 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 duties announced Friday will likely take effect when they are published in the Federal Register next week, a Commerce Department spokesman said.

But the U.S. International Trade Commission, another federal agency, is expected to weigh in next month, and the outcome of its investigation will determine the future of the tariffs imposed by the Department of the Commerce.

Whirlpool shares are up about 1% to $173.75 in late Friday trading.

Write to Andrew Tangel at Andrew.Tangel@wsj.com

 

(END) Dow Jones Newswires

December 09, 2016 15:55 ET (20:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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