Whirlpool (WHR) has raised concerns that some of its overseas competitors may be avoiding U.S. tariffs by reporting lower import values. The home appliance maker told U.S. officials that customs data shows import values began to fall sharply in June, even though retail prices stayed the same. Notably, Whirlpool has often challenged overseas rivals on trade, and this latest dispute could raise tensions again.
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Whirlpool Cites Federal Data to Support Its Claim
The company said federal import records reveal steep drops in the reported value of several types of appliances. For instance, garbage disposals from China fell from an average of $21 earlier this year to under $8 by July. Gas ranges from Thailand dropped by more than half to around $175, while washing machines from South Korea plunged from $838 to only $73. Whirlpool argued that these numbers were not realistic and may be an attempt to cut tariff bills.
Whirlpool said it has shared the data with U.S. Customs and Border Protection but has not filed a formal complaint. Daniel Calhoun, a Whirlpool adviser, said the Trump administration should act quickly to send a clear message against tariff evasion.
Rivals Deny the Allegations
Whirlpool named Samsung Electronics (SMSN), LG Electronics, and Haier Smart Home, the China-based owner of GE Appliances, as possible offenders. All three firms denied the claims. LG said it follows U.S. laws, while GE Appliances said Whirlpool’s claims were wrong and even included products it had not imported. GE also argued that Whirlpool was trying to hide “its own lagging performance” by attacking competitors.
Industry experts note that data-entry errors could also be a factor. Customs brokers said that the new steel tariffs introduced in June made reporting more complex. This could have caused errors in how shipments were recorded, giving the impression of lower per-unit values. Customs agents have already increased inspections at ports to look more closely at possible undervaluation.
Stock Price Movement
Whirlpool stock is down about 16% this year as demand for appliances remains weak. Recently, the company cut the quarterly dividend from $1.75 to $0.90 per share, signaling pressure on its finances. In its second-quarter report, the company posted revenue of $3.77 billion, down 5.4% year-over-year, and earnings per share of $1.34, which missed expectations.
Nevertheless, Whirlpool believes tougher enforcement of tariff rules could work in its favor, since about 80% of its U.S. appliances are made domestically.
Is WHR a Good Buy Right Now?
On TipRanks, Whirlpool stock has a Hold consensus rating based on one Buy, three Holds, and two Sell ratings. The average WHR price target of $90.00 implies 2.28% downside potential from current levels.
