Anchor: The U.S. International Trade Commission(ITC) on Tuesday recommended a 50 percent tariff for imports of large residential washing machines by Samsung and LG exceeding one-point-two million units. The move is seen as a message for the South Korean electronics giants to assemble more of the appliances in the U.S. and is apparently intended to improve the leverage of American firms.
Our Park Jong-hong has the details.
 
Report: The U.S. International Trade Commission(ITC) recommendation, if approved, will put a dent in exports from South Korean electronics giants.
 
The ITC recommended a graduated tariff rate be placed on imports of large residential washing machines exceeding one-point-two million units in each of the next three years. The rate would initially be set at 50 percent during the first year and slide down to 40 percent by the third year.
 
Samsung and LG exported a combined one billion dollars worth of large washing machines to the U.S. last year, holding 16 percent and 13 percent of the market, respectively.
 
The recommendation is in response to a safeguard petition by U.S. appliance giant Whirlpool which accounts for 38 percent of the market.
 
Last month, the ITC decided that Samsung and LG washing machines were having an adverse impact on the domestic industry.
 
Under the ITC recommendation, the high tariffs will apply to washing machines manufactured overseas, but not in South Korea as those are already subject to anti-dumping duties. 
 
Reacting to the measure, Samsung and LG said the move will hurt U.S. jobs and argued that such restrictions could end up limiting the choices of U.S. consumers.
 
In particular, Samsung, which is building a washing machine factory in South Carolina, said it has hired 350 American workers and plans to hire more and urged the Trump administration not to impose any measures that would harm workers.
 
Meanwhile, LG is working on the construction of a washing machine plant in Tennessee.
 
Industry insiders say the ITC suggestion calls for the South Korean companies to increase their manufacturing activities in the U.S.
 
The ITC recommendation will soon be sent to President Donald Trump after which he will make a decision within 60 days.
 
If Trump gives his stamp of approval, it would be the first such action since 2002 when the George W. Bush administration slapped 30-percent tariffs on imported steel.
Park Jong-hong, KBS World Radio News.