US investigates Samsung and LG washing machines manufactured in Vietnam

19 July, 2017 | Vietnamese Community
The logo of Samsung Electronics is seen at its headquarters in Seoul, South Korea. (Photo: Reuters/ File Photo)

The United States has launched an investigation into Samsung and LG washing machines manufactured by Vietnam, after allegations that the Korean appliance giant was dumping its products at unfairly low prices.

The probe was opened after US-based home application company Whirlpool filed a petition with the US International Trade Commission and requested for an investigation.

According to Whirlpool, imports of the made-in-Vietnam washing machines into the US increased from 1.6 million to 3.21 million per year from 2012-2016, causing serious losses for manufacturers in the US.

It claimed that both Samsung and LG had moved their production from China to Thailand and Vietnam to circumvent the tax that the US imposes on made-in-China products.

The move then allowed the Samsung and LG washing machines to be sold at lower prices than American companies.

Currently, the import tax stands at 1 percent for washing machines made in Vietnam and 2 percent for related components.

For products from China and South Korea, the taxes are as high as 32 to 52.5 percent.