By John Keilman

The appliance maker Whirlpool is stirring up a new trade dispute, telling the Trump administration that its overseas competitors could be evading hefty tariff bills by undervaluing their imports.

Its claims are based on federal data generated from import paperwork. Whirlpool said the data shows that the declared customs value of numerous appliances started to plummet in June. A smaller declared value would mean a lower tariff payment.

A Wall Street Journal review of the data shows that garbage disposals from China dropped from an average of $21 over the first five months of the year to $9 in June, and then less than $8 in July. Gas ranges from Thailand more than halved to $175. 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.

President Trump has made tariffs a keystone of his economic policy, saying they will raise revenue, protect domestic manufacturing and induce foreign companies to build factories in the U.S.

To support that policy, the government has vowed to crack down on trade fraud. In late August, the Justice Department announced a task force that will focus on tariff evasion and smuggling. It has also taken action against U.S. companies that have allegedly run afoul of the rules.

Whirlpool said it has shared its concerns with U.S. Customs and Border Protection and others within the administration but hasn't filed a formal complaint.

"I would expect this administration to address any customs duty evasion quickly and decisively, and send a message to potential future cheaters, " said Daniel Calhoun, who is a Whirlpool adviser at Rock Creek Trade. Calhoun was a Commerce Department official during the first Trump administration.

U.S. Customs and Border Protection declined to comment on the situation, but said it takes appropriate action when warranted.

Whirlpool has a history of accusing its foreign-based competitors of unfair trading practices. In 2018, the company prevailed in having duties imposed on imported washing machines.

Samsung Electronics and LG Electronics opened U.S. washing machine plants during Trump's first presidency.

The current dispute began over the summer, when federal data showed a large increase in the number of some imported appliances along with a drop in their value.

Whirlpool said it cross-referenced the data with its knowledge of its competitors' manufacturing facilities to come up with a list of companies it suspects of undervaluing imports. They include Samsung and LG, as well as China-based Haier, which owns GE Appliances.

Whirlpool, which produces 80% of its U.S.-bound appliances domestically, said it has confronted its rivals about the data.

Samsung declined to comment. LG said it is committed to complying with all U.S. laws and regulations. GE Appliances said that it takes customs compliance seriously, and that Whirlpool's allegations are inaccurate, adding that Whirlpool, for example, alleged GE Appliances had imported a type of clothes dryer but that it hadn't done so.

"We value competition and believe it is good for U.S. consumers, but this attack from Whirlpool looks like frustration over their own lagging performance," said GE Appliances, which has announced plans to expand U.S. production.

Whirlpool's stock is down around 20% this year as it struggles with sluggish demand. The company has predicted it will emerge as a winner after tariffs affect overseas competitors.

Whirlpool said it stands by its conclusions. "These are very large and sophisticated companies that know how to declare their imports," it said.

Nunzio De Filippis, co-chief executive of the customs brokerage CargoTrans, said data-entry errors could explain the situation. The implementation of new steel tariffs in June made reporting more complicated, and De Filippis said some brokers might be accidentally double-counting the quantity of products, making it look as though appliance imports are surging and their per-unit value is dropping .

He said U.S. Customs and Border Protection usually notifies brokers when it detects large statistical outliers.

Ashley Coxey, national director of business development at the logistics company Laufer Group International, said customs agents are increasing inspections at seaports and airports to look for undervalued goods. U.S. companies, which often deflected responsibility onto their overseas suppliers, are coming under heightened scrutiny, she said.

In a recently unsealed case, the Justice Department alleged that Barco Uniforms, a California-based seller of work garments, conspired with its suppliers to undervalue goods produced in China.

Government attorneys said the suppliers handled the importation of the garments and were responsible for paying tariffs. They said the suppliers underpaid the duties that they owed, and that Barco knew about and accepted the arrangement to get better prices.

Barco said it broke no laws, bore no responsibility for paying tariffs on the products and wasn't part of any conspiracy.

"We look forward to going to trial as soon as possible so we can prove our case and vindicate our reputation," the company said.

Write to John Keilman at john.keilman@wsj.com

(END) Dow Jones Newswires

September 14, 2025 21:00 ET (01:00 GMT)

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