November 22, 2024

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[THE INVESTOR] The US International Trade Commission is expected to announce as early as Nov. 21 (local time) its recommendations for safeguard measures that could include heftier taxes on washing machines of Samsung Electronics and LG Electronics, according to the Ministry of Trade, Industry and Energy on Nov. 21.

The anticipated move by the trade body comes after US home appliance giant Whirlpool filed a petition on May 31 against the two Korean firms, demanding higher tariffs accusing them of dumping.

Whirlpool accused Samsung and LG of moving their production facilities from China to Vietnam and Thailand in order to avoid anti-dumping tariffs that the US imposes on products made in China.

The import tariff stands at 1 percent for washers made in Vietnam and Thailand and 2 percent for components. The US government levies up to 52.5 percent on washers made in China and Korea.

The ITC’s recommendations may include higher tariffs, quantitative restrictions or tariff-rate quota, which applies a higher tariff rate above a certain quota, according to industry sources.

Some officials from the state government of South Carolina and Tennessee where Samsung and LG, respectively, built new home appliance factories, have expressed their opposition to the potential measures.

“The Korean Trade Ministry will come up with response measures after the US trade organization announces its recommendations,” an industry source said.

The MOTIE, which is preparing countermeasures along with Samsung and LG, is mulling a complaint with the World Trade Organization if the US initiates the safeguard measures, which will likely undercut the Korean firms’ businesses.

US President Donald Trump is scheduled to ratify the ITC’s recommendations early next year.

By Kim Young-won (wone0102@heraldcorp.com)