US Tariff Response

[Anchor Lead]

The Korean government will file a petition with the WTO over the U.S. decision to impose tariffs on washing machine and solar panel imports. Separately from the government’s response, Korean firms will open their factories in the U.S. at an earlier date.​

[Pkg]

Currently, the United States does not impose tariffs on Samsung and LG washing machines imported from Korea. This is allowed under the two countries' free trade agreement. Washing machine exports to the U.S. estimated at around one trillion won each year will immediately face enormous tariffs of 20 to 50 percent. This will raise the price of Korean washing machines in America, dealing a harsh blow to exports. Samsung and LG insist the latest decision also inflicts losses to U.S. consumers. The firms intend to bypass the safeguard measure by operating their plants in the U.S. which have production capacities of one million units. The government will also bring the case to the World Trade Organization against the high-level U.S. safeguards. Seoul believes the U.S. action does not constitute the activation of safeguards and is a politically charged decision for domestic reasons. Also in the case of solar panels, Korea believes the U.S. is more to blame with its domestic panel makers dealing with weakened competitiveness and management woes.

[Soundbite] Kim Hyun-chong(Trade Minister) : "Given my experience as a judge at the WTO Appellate Body, we can win if we file a suit over the latest measures against washing machine and solar panel imports."

Korea will also join hands with other countries that are subject to U.S. safeguards such as China for a joint response. If compensation talks with Washington also fall apart, Seoul will seek countermeasures and halt concessions including withdrawing the decision to lower tariffs on U.S. imports. Korea is set to pressure the U.S. as the WTO has sided with Korea in its recent ruling regarding anti-dumping tariffs on washing machines and dispute over steel for oil pipes. The government also drew a line regarding concerns the safeguard issue may affect the ongoing FTA revision negotiations with the U.S. saying they are separate matters.