S. Korea to consider WTO suit against U.S. tariffs on washing machines

By Lim Chang-won Posted : November 22, 2017, 17:04 Updated : November 22, 2017, 17:04

[Courtesy of LG]


South Korea threatened to consider lodging a protest with the World Trade Organization if U.S President Donald Trump endorses safeguard measures to impose high tariffs on washing machines produced by Samsung and LG.

In response to a safeguard petition filed by Whirlpool, the U.S. International Trade Commission recommended a 50 percent tariff rate on large residential washing machines built by Samsung and LG and exceeding a quota of 1.2 million units.

Whirlpool had demanded a flat tariff rate of 50 percent on all units, along with quotas on imported parts. Samsung and LG counterproposed a 50 percent tariff on units exceeding a quota of 1.45 million. The recommendation will be sent to Trump by December 4. On units below the quota line, the commission offered a tariff rate of zero percent or 20 percent.

In Seoul, representatives from Samsung and LG held a strategic session Wednesday with trade officials led by Deputy Minister for Trae Kang Sung-Chun, who called for a combined campaign against possible U.S. measures against South Korean products.

"We will determine if it violates (WTO rules) after watching the final decision," Kang told reporters. "There is a concern that (safeguard measures) will hamper efforts by Samsung and LG to create jobs through their investment in the U.S. and restrict American consumer choice."

The new U.S. measure would apply only to Samsung and LG washers manufactured overseas, not in South Korea. Samsung invested 380 million US dollars in building a washer plant in South Carolina, while LG spent $250 million on a separate plant in Tennessee. They exported large residential washing machines worth $1.0 billion to the U.S. last year.

 
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