WASHINGTON (Reuters) – The U.S. Commerce Department said in a statement on Wednesday it had determined that large home washing machines from China had been dumped in the United States.
U.S. appliance maker Whirlpool Corp <WHR.N> had urged the government in December to impose duties on washing machines manufactured in China by Samsung Electronics Co Ltd <005930.KS> and LG Electronics <066570.KS>.
Whirlpool had alleged that the machines were being sold in the United States at prices below production costs.
Samsung and LG will be required to pay cash deposits on washing machines imported from their production facilities in China following the ruling, Whirlpool said in a statement.
The cash deposit rate for Samsung is 111.09 percent, and the rate for LG is 49.88 percent.
In 2014, imports of large home washing machines from China were valued at an estimated $899.4 million, according to the Commerce Department.
China’s Commerce Ministry said the U.S. methodology was incorrect, urging the U.S. to listen to the opinions of the companies involved and to “abandon its mistaken methods”.
The companies involved were all multinationals and China hoped both sides could address each other’s concerns via talks to avoid worsening the situation, the ministry added.
The United States slapped duties in 2012 on Samsung and LG washing machines made in South Korea and Mexico after finding the products were sold too cheaply in the United States or benefited from unfair levels of government support.
Whirlpool had said the duties were being circumvented by shifting production to Chinese factories.
(Reporting by Arathy S Nair in Bengaluru and Mohammad Zargham; Additional reporting by Ben Blanchard in Beijing; Editing by Eric Beech and Nick Macfie)