The U.S. Commerce Department proposed duties of as much as 71 percent on large, residential washing machines made in South Korea, concluding that government subsidies for the goods undercut U.S. producers.

The agency announced a preliminary finding yesterday after Whirlpool Corp. of Benton Harbor, Michigan, said in a Dec. 30 complaint that LG Electronics Inc. and Daewoo Electronics Corp., both based in Seoul, and Samsung Electronics Co. of Suwon, South Korea, sell washers in the U.S. for less than production costs.

Daewoo was told to pay 71 percent, Samsung 1.2 percent and LG Electronics 0.22 percent on their portions of $569 million in annual imports from South Korea, according to the Commerce Department. All other companies would pay 1.2 percent. The duty set for Daewoo reflects the company’s refusal to respond to the U.S. investigation, the agency said.

Whirlpool is pleased “given the proven record that South Korean appliance producers have benefitted from their government’s subsidies that violate trade law,” Kristine Vernier, a spokeswoman, said in a statement.

Whirlpool closed up 30 cents to $63.13 in New York Stock Exchange trading, and touched $65.45 after the announcement.

The agency’s decision sets countervailing duties, which are imposed to offset government subsidies.

The Commerce Department has not issued results of its investigation into Whirlpool’s anti-dumping complaint against imports from Korea and Mexico. That decision is scheduled next month, according to a statement.

The Commerce Department and the U.S. International Trade Commission, an independent agency, are scheduled to make their final determinations on the trade disputes later this year. 

(Bloomberg)