EsThe battle to withdraw one of the first signature tariff programmes introduced by the Trump administration is ongoing, with a report from the Commerce Department due by Aug. 7 on washing machine tariffs under the section 201 program.
Washer manufacturing Whirlpool has stated in evidence that “import underselling has persisted” since tariffs were introduced in Jan. 2017 as “Samsung and LG also aggressively shipped through the in-quota tariff volume“, Inside Trade reports.
LG Electronics and Samsung Electronics have already responded to the likely long-term imposition of tariffs however by setting up their own factories in the U.S., as outlined in Panjiva research of Jun. 4.
LG Electronics has also stated that “collective domestic producers will soon have replaced most imports with U.S. production, and will capture more than 90 percent of the U.S. market“. Put another way, not all American produced washers will be produced by American firms.
There are clear signs that the tariffs have not even led to a marked decline in imports. Panjiva data shows there was a 24.8% year over year drop in seaborne imports in the 12 months to May 31. Yet, that only represents a cut of 4.1% versus 2016 levels – the prior year included rushed shipments to beat the tariff-rate quotas.
Source: Panjiva
The main shift in production has been a cut in imports from South Korea to 29.6% of the total in the 12 months to May 31 from 65.0% in 2016. Meanwhile imports from Thailand and Vietnam have reached 34.1% from 11.6% and those from China largely at 14.8% from 17.0%.
Source: Panjiva
There’s also been a shift between importing companies with Samsung Electronics and LG Electronics down 14.0% and 21.2% respectively in the 12 months to May 31 versus 2016. By contrast Electrolux‘s imports surged 91.9% higher while Haier jumped 183.9%. The latter may be scaling back however as its volumes fell 52.4% in three months to May 31 compared to a year earlier.
Source: Panjiva
