Whirlpool Alleges Foreign Competitors Declared Lower Value Of Appliances At Customs To Evade Trump Tariffs: Report

The company shared data that showed a decline in the declared value of appliances, ranging from kitchen appliances to washing machines, since June.

Consumer electronics maker Whirlpool has flagged to the U.S. government that its overseas competitors could be evading hefty tariff bills by undervaluing their imports, according to a report in the Wall Street Journal published late Sunday.

Whirlpool's claims are based on federal data from import paperwork, which, the company says, shows that the declared customs value of numerous appliances started to plummet in June. A smaller declared value would mean a lower tariff payment to the U.S. government

The WSJ reviewed that data and noted that garbage disposals (used in the kitchen) from China dropped from an average of $21 over the first five months of the year to $9 in June. Gas ranges from Thailand have more than halved to $175, while washing machines from South Korea sank from $838 to $73.

The retail prices of those appliances, which carry tariff rates ranging from 13% to 60%, haven’t shown a corresponding drop, Whirlpool said.

The company has shared its concerns with U.S. Customs and Border Protection and some other departments, but hasn’t filed a formal complaint. Whirlpool said it also confronted its rivals about the data.

The development comes as Whirlpool, which produces 80% of its U.S.-bound appliances domestically, struggles with sluggish demand. Its stock is down 20% year-to-date, with a 'bearish' reading on the Stocktwits sentiment meter.

Top foreign appliances suppliers to the U.S. include South Korea's Samsung Electronics and LG Electronics, which opened U.S. washing machine plants during Trump’s first presidency, China's Haier, and Sweden's Electrolux.

GE Appliances, Haier's U.S. subsidiary, said in a statement to the WSJ that Whirlpool's move "looks like frustration over their own lagging performance," calling the allegations inaccurate.

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