US-South Korea washing machine trade war: South Korea filed a final appeal on Wednesday

Just yesterday, at the hearing held by the US International Trade Commission, Korean companies finally appealed to the US washing machine trade policy. The South Korean government also attended the hearing to support the company’s position and called on the US government to revoke any restrictions on Korean washing machines. .

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In January 2017, US President Trump passed the US International Trade Commission (ITC) proposal to increase tariffs on imported washing machines. The United States will continue to maintain import tariffs on branded washing machines from China, which are up to 52.5%. The price is lower than the cost, which damages the interests of American home appliance manufacturers such as Whirlpool.

However, this news did not put any pressure on Chinese home appliance companies, because this tariff policy is mainly aimed at South Korean manufacturers Samsung and LG, which set up factories in China.

How did the United States and South Korea pass the washing machine? The cause of the incident can be traced back to five years ago when the US home appliance manufacturer Whirlpool submitted a petition to the US International Trade Commission, hoping that the government would prevent Korean companies from flooding with cheap washing machines. American market.

At the time, South Korea’s laundry factory for the US market was mainly located in Mexico, so the United States frantically raised tariffs on imported washing machines from Mexico. When South Korea saw that the situation was not right, it shifted these manufacturing operations to China. This is the beginning of the United States to impose heavy taxes on the "brand" washing machines produced in China.

The South Korean side can't do it with China. It also transfers China's manufacturing business to Thailand and Vietnam. The US is naturally not stupid. I will mention the tax wherever you go.

This time, in order to let the United States cancel the high tariffs, the Korean manufacturers also sent blood to the factory, completely disregarding the huge cost of setting up factories in the United States. They all said that we can help you to ease employment problems in the United States.

John Herrington, vice president of Samsung's US Home Appliances division, said: "We have finalized our plan to build home appliances in South Carolina. We will employ nearly 1,000 people next year and produce more than 1 million washing machines. LG last March. Said: "LG will allocate $250 million in 2019 to build a factory in Tennessee. ”

Both sides said that the final result of the tariff issue will affect their decision to invest in the United States, hoping not to cause a loss of employment between the American people and American consumers.

According to yesterday’s hearing, the US International Trade Commission will report to US President Donald Trump on detailed trade measures, and Trump will make a final decision around the next month.

In general, although the trade disputes that have lasted for several years are seen by both sides, the United States has always maintained absolute initiative. Now, in the beginning of 2018, Korean companies will have to regain a city at any cost. It is a win or lose. It depends on how Trump feels next month.

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