Whirlpool Accuses Samsung, LG and GE Appliances of Undervaluing Imports to Evade U.S. Tariffs

Whirlpool Corp. has accused rival appliance makers, including Samsung Electronics, LG Electronics and GE Appliances, of declaring sharply lower values for imported products in an apparent effort to avoid tariffs put in place during President Donald Trump’s administration, according to a Wall Street Journal report and the company’s review of federal customs data.

The Michigan-based company said it detected a surge in imports this summer accompanied by steep drops in declared values for items such as washing machines, gas ranges and garbage disposals even as tariff rates on many appliances rose by as much as 60 percent. Whirlpool’s analysis cites examples in which the declared cost of a gas range from Thailand fell to about $175 and the declared value for a washing machine from South Korea dropped to roughly $73 from $838.

Whirlpool said retail prices for the products did not move in tandem with the lower declared import values and that the company shared its findings with U.S. Customs and Border Protection and other federal agencies. Whirlpool did not file a formal trade complaint, according to the report, but company officials said they confronted competitors with the data.

“These are very large and sophisticated companies that know how to declare their imports,” Whirlpool told the Journal. Daniel Calhoun, an adviser to Whirlpool at Rock Creek Trade, said he expected the administration to address what he characterized as customs duty evasion "quickly and decisively."

GE Appliances, which was sold by General Electric to China-based Haier in 2016, issued a sharp rebuttal. In a statement, GE Appliances said Whirlpool had lodged "unsupported claims with the Administration, based essentially on guesswork," calling the allegations "irresponsible and inappropriate." The company added that it takes compliance seriously and demanded that Whirlpool retract its statements and cease disseminating what it called inaccurate information about GE Appliances.

Samsung did not immediately respond to a request for comment. LG said it was "committed to compliance with all U.S. laws and regulations." Both Samsung and LG opened U.S.-based washing machine plants during Trump’s first term, and Samsung has previously increased U.S. production capacity.

Whirlpool noted in the report that about 80 percent of its products are made in the United States. The company previously conducted similar research in 2018 that led to duties being imposed on imported washing machines from some competitors.

The recent allegations center on federal import declarations, which are used to assess duties. If import values are underreported on customs paperwork, duties can be reduced. Whirlpool’s summary of federal data raised questions for federal authorities about whether the declared invoice prices matched market realities.

U.S. Customs and Border Protection confirmed only that it had received materials from parties alleging inaccurate import declarations but did not disclose whether it had opened investigations. Trade enforcement can involve audits, administrative penalties and potential retroactive duties if evasion is found.

GE Appliances announced earlier this year a multibillion-dollar plan to expand U.S. production, saying it would invest $3 billion over five years and shift some operations to Kentucky, Georgia, Alabama, Tennessee and South Carolina. The company’s public statement on the tariffs dispute reiterated its stated commitment to compliance while contesting Whirlpool’s characterization of the data.

Whirlpool’s referral of its findings to federal authorities places the issue with agencies responsible for enforcing customs and trade law. The companies named in Whirlpool’s review have issued differing responses, framing the matter as either meritless or as under review, while federal agencies have not announced any enforcement actions tied to the allegations as of this report.