Whirlpool Corp (NYSE:WHR) is reportedly raising alarms with the Trump administration over what it says is widespread tariff evasion by foreign competitors, potentially undercutting U.S. manufacturing.
The appliance maker argues that numerous overseas manufacturers are undervaluing their imports, thereby avoiding steep tariffs.
The claims are based on federal data from import paperwork, the Wall Street Journal reported on Sunday.
Also Read: David Tepper’s Hedge Fund Bets On Intel, UnitedHealth; Cuts Position In Four Mag 7 Stocks
The WSJ reported that the declared customs value of various appliances sharply declined starting in June, allowing importers to pay significantly lower duties.
A Wall Street Journal review of the data found that garbage disposals from China fell from an average of $21 in the first five months of the year to under $8 in July. Similarly, gas ranges from Thailand dropped more than half to $175, and washing machines from South Korea plummeted from $838 to $73.
Despite these drops in declared values, retail prices for these products have not reflected similar reductions, Whirlpool told WSJ.
The company, which produces 80% of its U.S.-bound appliances domestically, has cross-referenced these figures with its knowledge of competitor manufacturing facilities and suspects companies like Samsung Electronics (OTC:SSNGY) (OTC:SSNHZ) (OTC:SSNLF), LG Electronics Inc (OTC:LGEIY) (OTC:LGEJY), and China-based Haier, owner of GE Appliances, of undervaluing imports.
President Trump has made tariffs central to his economic strategy, asserting they boost revenue, support domestic manufacturing, and encourage foreign investment in U.S. production.
The administration has promised to clamp down on trade fraud, with the Justice Department establishing a task force to investigate tariff evasion and smuggling. Whirlpool has shared its concerns with U.S. Customs and Border Protection but has yet to file a formal complaint.
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.
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.
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 lowered its EPS guidance from $8.75 to between $5.00 and $7.00, versus the consensus estimate of $7.81.
It also lowered its adjusted EPS guidance from $10 to between $6.00 and $8.00, versus the consensus estimate of $9.23. The company affirmed its sales guidance of $15.80 billion, versus the consensus estimate of $15.65 billion.
Price Action: WHR stock is up 3.11% at $94.96 during the premarket session at the last check on Monday.
Read Next:
Photo by Grzegorz Czapski via Shutterstock
