Whirlpool Flags Possible Tariff Evasion by Foreign Competitors Amid Ongoing Trade Tensions

Whirlpool Corp WHR has raised concerns with the Trump administration over widespread tariff evasion by foreign competitors. The company claims that numerous overseas manufacturers are undervaluing imports to avoid steep tariffs. Data from import paperwork shows significant declines in declared customs values for various appliances, potentially undercutting US manufacturing. Whirlpool suspects companies like Samsung, LG, and Haier of undervaluing imports.

Whirlpool Corporation (WHR) has brought to the attention of the Trump administration allegations of widespread tariff evasion by foreign competitors. The company claims that numerous overseas manufacturers are undervaluing imports to avoid steep tariffs, potentially undercutting U.S. manufacturing. Data from import paperwork shows significant declines in declared customs values for various appliances, with washing machines from South Korea, for instance, dropping from nearly $840 to $73 in recent months Whirlpool seeks investigation into alleged tariff evasion by competitors^[1].

Whirlpool has shared its concerns with the administration and directly with foreign competitors such as Samsung, LG, and Haier, which owns GE Appliances. The company argues that recent trade policies can only help level the playing field for U.S. manufacturers if foreign-owned companies adhere to the rules. Whirlpool, a U.S. manufacturer for over 100 years, is standing up for its approximately 20,000 U.S. employees Whirlpool seeks investigation into alleged tariff evasion by competitors^[1].

While Whirlpool has not yet filed a formal complaint, the company has cross-referenced the data with its knowledge of competitor manufacturing facilities, suspecting companies like Samsung Electronics and LG Electronics of undervaluing imports. The declared customs value of various appliances sharply declined starting in June, allowing importers to pay significantly lower duties. Retail prices for these products have not reflected similar reductions Whirlpool Flags Possible Tariff Evasion By Foreign Competitors^[2].

The administration has promised to clamp down on trade fraud, with the Justice Department establishing a task force to investigate tariff evasion and smuggling. However, some experts caution that data-entry errors could explain the discrepancies. Nunzio De Filippis, co-CEO of CargoTrans, noted that new steel tariffs introduced in June may have complicated reporting, while Ashley Coxey of Laufer Group International said customs agents are increasing inspections to catch undervaluation Whirlpool Flags Possible Tariff Evasion By Foreign Competitors^[2].

A similar case recently surfaced in California, where the Justice Department accused Barco Uniforms and its suppliers of undervaluing imports from China to avoid tariffs. Barco denied wrongdoing and promised to clear its name in court Whirlpool Flags Possible Tariff Evasion By Foreign Competitors^[2].

The dispute reflects ongoing tensions between U.S. manufacturers and foreign competitors amid a broader crackdown on trade enforcement. In July, Whirlpool reported adjusted earnings per share of $1.34, missing the consensus estimate of $1.78. In addition, sales were $3.77 billion, missing the consensus estimate of $3.89 billion Whirlpool Flags Possible Tariff Evasion By Foreign Competitors^[2].