Commerce Dept to Continue Imposing Duties on Samsung, LG Washing Machines--Update

By Andrew Tangel 

The U.S. Department of Commerce on Friday 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 would impose antidumping margins of 52.51% for Samsung and 32.12% for LG.

Whirlpool Chairman and Chief Executive Jeff Fettig said 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."

Whirlpool and LG both acknowledged the tariffs were unlikely to have much of an effect. Whirlpool said LG and Samsung had already shifted production for U.S.-bound washing machines out of China, which LG confirmed. Samsung didn't immediately respond to a request for comment.

LG said the duties were too high and were the result of a "wacky -- and possibly illegal -- margin calculation" that overvalued certain washing-machine components.

Samsung also criticized the agency's calculations, but expressed satisfaction with the department's decision not to impose retroactive tariffs for allegedly stockpiling washing machines ahead of this ruling.

A Department of Commerce spokesman didn't respond to the companies' criticisms.

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 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 U.S. International Trade Commission is expected to weigh in next month.

Whirlpool shares rose about 1% to $173.73 on Friday.

Write to Andrew Tangel at [e-mail]

(END) Dow Jones Newswires

December 09, 2016 18:26 ET (23:26 GMT)

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