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Whirlpool Seeks Legal Protection From Surging Samsung & LG Appliance Sales

Whirlpool whose products are distributed by Harvey Norman Company Arisit have taken their beef with LG and Samsung to a new level in an effort to survive.

Last night the US appliance Company filed a petition to extend the current safeguard against Samsung Electronics and LG Electronics over their exports of washing machines to the US market, according to sources.

The US Federal Government introduced import restriction in 2018, after Whirlpool requested a 16 percent tariff on up to 1.2 million imported washers for residential use and a 40 percent tariff on surplus volumes.

It was a measure against rivals Samsung and LG, which it accused of dumping washers produced in low-cost countries in the US market. The tariffs are set to expire in February.

In Australia, the US Company was struggling selling direct to retailers now Harvey Norman stores are their biggest retailer after Arisit took over distribution.

Both Samsung and LG claim that they expect the safeguard to have little impact on their current businesses even if the restriction is extended as both Korean Companies are reporting record appliance growth due to COVID-19 lockdowns.

This time round the Korean Companies can argue that because they have relocated their manufacturing facilities and started producing residential washers on US soil the tariff should not apply.

Whirlpool MWC25 Crisp N Grill

Samsung began operating its US South Carolina factory since January 2018, while LG kick-started its Tennessee plant in May last year.

“Most of the Samsung and LG washers sold in the US are produced in the US, so the extension of the safeguard wouldn’t affect the companies’ businesses in the US,” said an industry official. “Such action is seen as Whirlpool’s last resort to survive in the competition.”

According to TraQline, Samsung snatched the top spot in the US washing machine market with a 21 percent share, followed by LG with 17 percent and Whirlpool with 16 percent in the first quarter.

US President Donald Trump reaffirmed the US government’s protectionist stance by mentioning the safeguard on washer imports during his visit to a Whirlpool plant in Ohio on this week.

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