EnAs widely expected the U.S. International Trade Commission has determined that Chinese exports of large residential washing machines has materially damaged U.S. industry. The case was brought by Whirlpool against manufacturers including Samsung Electronics and LG. As is often the case, exports from China to the U.S. have already fallen.
Panjiva data shows shipments from China to the U.S. fell 29.3% in the three months to November 30 on a year earlier. Yet, overall imports increased 7.7% over the same period due to increased shipments from Vietnam and Thailand.
This can be seen as part of a general trend of countries other than China becoming the ‘problem’ for U.S. manufacturers, as discussed in Panjiva research of January 10. It also highlights that the intended effects of trade cases – namely to protect U.S. industry – can be defeated by rapid reactions by targeted suppliers.
Source: Panjiva
Samsung has proven to be particularly agile in adapting its supply chain to the case since it was initiated in January 2016. It cut its imports of all washing machines from China by 84.3% in the 12 months to October. At the same time though it ramped up imports from Vietnam and Thailand, with the result that its total exports to the U.S. climbed 20.2% in the fourth quarter, and 12.7% for the full year.
Source: Panjiva
LG, by contrast, has struggled to adapt as quickly. While it cut its Chinese exports by 88.8% in the fourth quarter, it has only partially replaced this with shipments from Thailand. As a consequence its overall shipments to the U.S. fell 41.0% in the fourth quarter.
Source: Panjiva
