PRESIDENT’S CHOICE
Whirlpool’s case against imported washing machines will leave the ultimate decision to Trump,
WASHINGTON— A brewing fight over imported washing machines will pose a key test for U.S. President Donald Trump’s willingness to impose the type of strict trade barriers he often touts as necessary to protect U.S. businesses.
The U.S. International Trade Commission cleared the way last weekfor possible trade actions with its ruling that surging imports of washers are harming U.S. manufacturers.
The ruling stemmed from a rare and potentially powerful type of trade case filed in May by Whirlpool Corp.’s petition — just the latest in a series of claims of unfair trade practices against two South Korean manufacturers, Samsung Electronic Co. Ltd. and LG Electronics Inc. — says the companies hopscotched their production facilities around the world to evade duties the U.S. had imposed on specific countries.
Rather than bring a typical trade complaint — like those Whirlpool successfully brought twice before, claiming that Samsung and LG were “dumping” their products at unlawfully low prices — Whirlpool chose to file a rarely used type of case that could cover all foreign countries and would leave the ultimate decision to Trump. In this kind of “safeguard” case, the president has broad authority to impose barriers, including a sweeping tariff, if the U.S. finds that manufacturers were harmed by rising imports.
The president has frequently discussed using tariffs to protect U.S. manufacturers from cost-cutting rivals. But apart from the routine antidumping and subsidy cases that crop up in every administration, Trump himself has yet to enact any broad measure. “This vote sets the stage for the administration to put in place an effective remedy to create a level playing field for American workers and manufacturers,” Jeff Fettig, chairperson of Whirlpool, said. “This type of corrective action will create U.S. manufacturing jobs.”
Samsung and LG said restrictions on their products would hurt customers by raising prices, decreasing choices and dampening innovation.
Critics agree with the South Korean companies’ position that this type of trade case will raise costs for U.S. consumers. They also caution that unintended consequences could arise in a world of multinational supply chains, where the dividing line between U.S. and foreign companies is not cut and dried. Both Samsung and LG have announced plans to hire U.S. workers.
In early 2017, the United States finalized similar duties on washers from China, where Whirlpool says the South Korean companies relocated their manufacturing facilities.
In a trade case filed May 31, Whirlpool said that its rivals were still selling imported washing machines at illegally low prices, and it appealed to the U.S. government for more sweeping protections.