Penalties not justified.
Following the news that US president, Donald Trump will impose a 50% tariff on imported washing machines into the US, LG Electronics USA has released a statement that has been shared with Appliance Retailer.
“We are very disappointed in this misguided decision, which far exceeds what the expert agency (the US International Trade Commission) recommended. This is a textbook case about how certain companies can game the process to use trade laws to try to accomplish what they can’t accomplish in the marketplace.
“Safeguard cases are not about unfair trade. In fact, in this case, there is no unfair trade. This case is not even about domestic versus foreign competition. Soon, consumers will buy a washer made either in Ohio, Kentucky, Tennessee or South Carolina.
“LG is building its US washer manufacturing facility in Clarksville, Tennessee, the most advanced factory in the world. The result of this case hinders the ramp-up of the new plant and threatens many new US jobs. And the result also harms iconic American retailers that depend upon the sale of LG washers.
“Consumers should be the ones to decide what washers they want to buy based upon their own preferences, not because of unjustified trade penalties imposed on products by the U.S. government. Millions of Americans love their LG washers because of their innovative features, efficiency, styling and connectivity. LG washers are rated highest for reliability, and JD Power and the American Customer Satisfaction Index rank them highest in customer satisfaction.
“From the beginning, LG opposed the use of the safeguard procedure, and we remain steadfast in our belief that penalties are not justified. LG will explore its options to try to mitigate the effect of this trade decision on American consumers, retailers and the people of Tennessee.”