Whirlpool has accused its competitors of undervaluing appliances made overseas to avoid President Trump’s tariffs, according to a report.
Samsung, LG Electronics and GE Appliances began lowballing the costs of their imported washing machines, stoves, garbage disposals and other appliances in June, according to a Wall Street Journal report.
The declared cost of gas ranges from Thailand, for example, dropped by more than half to $175 while washing machines made in South Korea suddenly dropped to $73 from $838, according to Whirlpool’s research of federal customs data.
Meanwhile, the retail prices for those products didn’t change, according to the report.
The marked-down values came as the tariff rates for the appliances increased by as much as 60%.
Whirlpool did not file a formal complaint, but it shared its research with US Customs and Border Protection as well as other agencies, according to the report.
“I would expect this administration to address any customs duty evasion quickly and decisively, and send a message to potential future cheaters,” Daniel Calhoun, who is a Whirlpool adviser at Rock Creek Trade, told The Journal.
Whirlpool noticed the alleged discrepancies over the summer when there was a huge increase in the number of imported appliances and a big drop in their reported value, according to the federal data.
The Michigan-based company, which makes 80% of its products in the US, confronted its competitors with the data, according to the report.
“These are very large and sophisticated companies that know how to declare their imports,” Whirlpool told The Journal.
GE Appliances, which General Electric sold to China-based Haier in 2016, fired back.
“For Whirlpool to lodge unsupported claims with the Administration, based essentially on guesswork, is irresponsible and inappropriate,” the company said in a statement. “GE Appliances takes compliance seriously.”
“We are demanding that Whirlpool retract its statements to the Administration and cease disseminating inaccurate information about our company.”
GE Appliances announced a $3 billion plan to expand its US-based production over the next five years, moving some of its overseas operations to Kentucky, Georgia, Alabama, Tennessee and South Carolina.
Samsung Electronics and LG Electronics — which opened US washing machine plants during Trump’s first term — did not immediately respond to requests for comment.
Whirlpool conducted similar research in 2018 when it was successful in having duties imposed on its rivals’ washing machines.
