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The US International Trade Commission recommends heavy taxes on Samsung and LG washing machines

time2017/11/23

According to foreign media reports, the U. S. International Trade Commission 21 proposals for Samsung Electronics and LG companies to produce washing machines tax, in order to avoid their low-priced products flooded the U.S. market. The U.S. initiative will benefit domestic appliance manufacturers.
According to the report, the United States International Trade Commission said that in the next three years, the import of more than 1 million 200 thousand large household washing machines will be levied a progressive tax, the first year tax rate is 50%, down to third in 40% years. It is expected that President Trump will make a decision on the proposal before the beginning of next year.
The United States International Trade Commission last month announced the results of the survey said the surge in imports impairs domestic manufacturers, but there is no evidence to determine the Korean made washing machine is arch-criminal. Samsung Electronics and LG electronics say taxes will raise prices, limiting consumer choice and losing jobs.
The two South Korean companies plan to open home appliance factories in the United States in the next few years, which may ease the impact of the possible import tariffs.
A spokesman for LG said the company expects to sell about 1 million 200 thousand washing machines in the United States this year. He added that the total sales of LG and Samsung will reach about 2 million 500 thousand units in the United States, much higher than the recommended quota. Samsung Electronics spokesman said it was still unable to get sales of the company's products in the United states.
The South Korean Ministry of industry, trade and resources, after 22 days of meeting with executives of Samsung and LG, said the South Korean government plans to see how the U.S. president made a final decision on tariffs, and then to consider whether to appeal to the world trade organization.
The Ministry said in a statement that if 20% tariffs were imposed on 1 million 200 thousand washing machines within the quota, it would be a major blow to South Korea's exports to the United states".