The U.S. International Trade Commission summoned a panel to review the U.S. market on washing machines. The findings were ready on Thursday. According to them, the local productions have been bleeding due to rivals’ massive imports. This review could lead to duty surges for Samsung and LG products. However, President Donald Trump was appointed as the only authority that can solve the washing machine conflict in the U.S.
The U.S. Commission Voted 4-0 on Finding a Solution to the Washing Machine Conflict
U.S. behemoth Whirlpool Corp was the entity that opened this controversial case. The company sought restrictions on South Korean rivals.
These foreign organizations met no limitations on exporting washers with extremely competitive prices. Therefore, LG Electronics Inc. and Samsung Electronics Co Ltd. kept choking domestic producers with cheap products.
On Thursday, the U.S. International Trade Commission decided on a turning point in this washing machine conflict. With a 4-0 vote, authorities ruled that imports are damaging local businesses. Therefore, they took upon themselves the task to come up with an array of solutions by December 4.
However, it will be Donald Trump’s responsibility to choose a suitable remedy by early 2018. Until then, the commission will have another meeting on October 19 to begin the list of recommendations.
President Trump Will Have to Decide Between Placing America First or Respecting the Free Market
Whirlpool Chairman Jeff Fettig was pleased with the findings of the panel. His company is engaged in a year-long battle with Samsung and LG regarding anti-dumping duties.
South Korean manufacturers received complaints that they keep moving their productions around the world. This way, they are able to avoid paying U.S. duties.
“This type of corrective action will create U.S. manufacturing jobs.”
On the other hand, Samsung and LG perceive any action against them as detrimental to the U.S as well. The market will start suffering price surges, product range limitations, and frozen innovation.
On top of that, South Korean officials highlighted their added boost to the U.S. economy. They invested hundreds of millions of dollars in local factories.
Moreover, LG delivered accusations to Whirlpool as well. The South Korean manufacturer sees the washing machine conflict as a pretext for Whirlpool to remove a potent rival.
Therefore, Trump’s mission will not be an easy one. On the one hand, he has “America First” agenda to respect. On the other hand, he has to consider the rules of the free market.
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