Commerce Department to Continue Imposing Duties on Samsung, LG Washing Machines
December 09 2016 - 4:10PM
Dow Jones News
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.
Whirlpool (NYSE:WHR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Whirlpool (NYSE:WHR)
Historical Stock Chart
From Apr 2023 to Apr 2024