US Authorities Find No Evidence in Alleged Korean Washing Machine Tariff Evasion

Regarding allegations raised by U.S. appliance manufacturer Whirlpool that Korean companies are evading tariffs by using “undervaluation” (reporting lower-than-actual amounts on import documents) when importing products such as washing machines, authorities have stated that no such evidence has been found.

According to the Wall Street Journal (WSJ) on the 15th (local time), the U.S. Customs and Border Protection (CBP) reached this conclusion after conducting an investigation.

LG Signature washer and dryer displayed in a store in the United States. LG Electronics

Last month, Whirlpool raised suspicions of tariff evasion against Samsung Electronics and LG Electronics of Korea, as well as China’s Haier, the current parent company of GE Appliances, formerly an American company. Whirlpool pointed to a sharp drop in the declared customs values of various imported appliances since June this year, alleging that these companies intentionally set lower prices to reduce tariff payments.

For example, the average declared value of Korean-made washing machines plummeted from $838 during January to May this year to $73 in June.

However, at the time, some customs brokerage firms suggested that this price fluctuation was likely due to simple input errors rather than deliberate tariff evasion. In June this year, the Donald Trump administration imposed new product-specific tariffs on steel, complicating the reporting process. Some brokers reportedly counted product quantities multiple times, which could have resulted in import volumes appearing to surge and the per-unit price to drop sharply.

CBP also reached the same conclusion after its investigation, stating that the confusion caused by the new steel tariffs led brokers and importers to make input errors, resulting in these discrepancies.

Whirlpool argued that although some import data was revised after it raised the issue, a significant price drop still remains. The company also claimed that CBP has yet to respond to other issues it raised.

GE Appliances stated, “Any well-run company should fully understand the limitations of such data,” adding, “It is unfortunate that Whirlpool has misused this information as a weapon to gain a competitive advantage.”

Meanwhile, Whirlpool has previously raised concerns about unfair trade practices by foreign competitors. During the first Trump administration in 2018, the company succeeded in having tariffs imposed on imported washing machines. In response, Samsung Electronics and LG Electronics built washing machine manufacturing plants in the United States at that time.