The South Korean government was in an emergency meeting with industry officials on Tuesday morning following the United States’ decision to levy heavy anti-dumping duties on Korean washing machines and solar panels.

The Korean trade ministry said it will file a petition with the World Trade Organization (WTO) against the U.S. government for imposing excessive duties on Korean washing machine and solar panel imports to the U.S. “The U.S. government’s safeguard measure is unfair and I believe we have a good chance to win when we file a petition with WTO,” Trade Minister Kim Hyun-chong said in a meeting with industry officials on Tuesday.

The meeting was called after the U.S Trade Representative Robert Lighthizer announced Monday (local time) that President Donald Trump has approved the U.S. International Trade Commission (ITC)’s recommendations to impose safeguard tariffs on large residential washing machines and solar cells and modules shipped from Korea.

“The ITC found that U.S. producers had been seriously injured by imports and made several recommendations to the President,” said Lighthizer in a written statement. “The President’s action makes clear again that the Trump Administration will always defend American workers, farmers, ranchers, and businesses in this regard.”

The safeguard measures include a 20 percent tariff on the first 1.2 million washing machines imported in year one and a 50 percent tariff on units exceeding the quota. The numbers decrease to 18 percent and 45 percent, respectively, in the second year and to 16 percent and 40 percent, respectively, in the third year.

On imported solar modules and cells, a tariff of 30 percent will be slapped in the first year, 25 percent in the second year, 20 percent in the third year, and 15 percent in the fourth year. The first 2.5 gigawatts of imported solar cells will be exempted from the tariff in each of those four years.

Washington’s safeguard measures are expected to deal a heavy blow to Korean manufacturers. Korean electronics makers including Samsung Electronics Co. and LG Electronics Inc. export a combined 3 million units of washing machines worth 1 trillion won ($934.8 million) annually to the U.S.

Following Washington’s decision, Samsung Electronics said in a press statement posted on its corporate website that “(the) announcement is a great loss for American consumers and workers. This tariff is a tax on every consumer who wants to buy a washing machine. Everyone will pay more, with fewer choices.”

At 2:31 p.m. Tuesday, shares of Samsung Electronics were 1.41 percent higher at 2,446,000 won, and those of LG Electronics percent 0.46 higher at 109,500 won.

Korean solar panel makers that exported $1.2 billion in solar cells to the United State last year are also expected to suffer heavy losses from the U.S. tariff decision. Currently, Hanwha Q Cells, LG Electronics and Hyundai Heavy Industries Green Energy are major exporters of solar panels to the U.S.

By Ko Jae-man and Cho Jeehyun

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]