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Global Import Restrictions on Clothes Washers Recommended by ITC

Monday, November 27, 2017
Sandler, Travis & Rosenberg Trade Report

The International Trade Commission has announced its recommendations for import restrictions on large residential washers following its determination in a section 201 global safeguard investigation that increased imports of such products are seriously injuring the domestic industry. These recommendations will be forwarded by Dec. 4 to President Trump, who faces a Feb. 4 deadline for making a final decision on which, if any, to implement.

The commissioners unanimously recommended that the president establish a tariff-rate quota of 1.2 million units on subject washers for a period of three years. Out-of-quota washer imports would face a tariff of 50 percent in the first year, 45 percent in the second year, and 40 percent in the third year. Chairman Schmidtlein and Commissioner Williamson also favor a tariff for in-quota washer imports of 20 percent in the first year, 18 percent in the second year, and 15 percent in the third year, but Vice Chairman Johanson and Commissioner Broadbent declined to recommend the imposition of such a tariff.

A separate TRQ would be imposed on covered parts of large residential washers, with any imports above the TRQ facing a tariff of 50 percent in the first year, 45 percent in the second year, and 40 percent in the third year. This TRQ would initially be set at 50,000 units in the first year, and then raised to 70,000 units in the second year and 90,000 units in the third year.

Finally, the commissioners recommended excluding Australia, Canada, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Nicaragua, Panama, Peru, Singapore, and beneficiary countries under the Caribbean Basin Economic Recovery Act from the recommended measures.

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