South Korean electronics makers Samsung Electronics Co. and LG Electronics Inc. would face up to 52.51 percent punitive duties when exporting certain large residential washers made in China to the United States after the U.S. trade authority delivered a final ruling on antidumping review on their products.

The U.S. Department of Commerce announced on December 9 that they would impose 52.51 percent anti-dumping duty on Samsung’s washers produced in its Chinese entity Suzhou Samsung Electronics Co. and 32.12 percent on LG’s washers built in its Chinese entity Nanjin LG-Panda Appliances Co.

The ruling came as a response to a petition filed by U.S. home appliances maker Whirlpool Corp. against the two Korean electronics giants for selling China-made washers below a fair value in the U.S. market. If the U.S. International Trade Investigation (ITC) upholds the finding, Samsung and LG would be charged 30 percent to 50 percent higher punitive tariffs when exporting the products made in their Chinese factories to the U.S.

Whirlpool has been fearful of increasing dominance by Korean washers. According to a market researcher TraQline, Whirlpool took up the largest share in the U.S. washer market with 18.6 percent as of the end of third quarter this year, narrowly followed by Samsung with 17.9 percent and LG with 16.6 percent. Whirlpool’s market share shed 1.1 percentage point, while its Korean rivals` share added 1 to 3 percentage points.

The U.S electronics manufacturer filed a petition also in 2011 versus Samsung and LG on dumping charges. The U.S. Department of Commerce levied anti-dumping penalties on the Korean firms, to which the Korean government responded with a suit at the World Trade Organization (WTO) in 2013. The WTO ruled in favor of the Korean government and companies in September this year.

The latest move is more likely aimed at China as Korean producers easily can assemble their products in manufacturing bases outside China to avoid the levy. President-elect Donald Trump on his campaign trail warned of 45-percent tariff on Chinese imports.

By Kim Dong-eun

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