The United States approved the controversial tariffs on imported washing machines, and solar panels.
The move is in line with President Trump’s “America First” trade policy, whose aim is to protect the local manufacturers from foreign competition.
Chinese solar-panel maker and washing machine manufacturer in South Korea be affected the most.
Both countries have criticized the tariffs, the President, Trump has spoken since he got to the office.
The actions are to be seen as the President of the most important moves to draw because of his decision to negotiate US out of the Trans-Pacific Partnership agreement (TPP), the North American Free Trade Agreement (Nafta).
Why have been imposed on the rates?
The tougher policy was approved and found by the President of Trump after the U.S. International Trade Commission, local manufacturers have been hurt by cheaper imports.
The tariffs put on solar panels were lower than the domestic U.S. manufacturers had hoped, but the duties on washing machines and parts were steeper than expected – adding as much as 50%, in some cases, according to U.S. documents.
South Korea said it would complain to the World Trade organization (WTO), calls the rates “excessive” and “regrettable”. Manufacturers, including Samsung and LG, are competing in the washing machine market, with U.S. companies such as Whirlpool.
China is now the world’s largest solar-panel manufacturers, said the move would further damage the global trading environment.
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How are the rates for the work?
The first of 1.2 million imported large residential washing machines in the first year have imposed a 20% tariff, while it’s 50% on machines over that number.
By the third year, this will fall to 16% and 40%.
Meanwhile, the rates of cells and modules increase on imported solar in the first year, 30%, decreased to 15% in the fourth year, although a total of 2.5 gigawatts (GW) of imported cells, in the tariff-free annually.What has been the reaction?
US appliance maker Whirlpool, which has tried for years of protection against cheaper imports from South Korea and Mexico, welcomed the move.
“This announcement caps nearly a decade of litigation and new manufacturing jobs in Ohio, Kentucky, South Carolina and Tennessee,” chairman Jeff said Greasy in a statement.
Environmentalists argue that the form of solar panels more expensive risks slowing down the development of renewable energy in the country.
China and South Korea reacted angrily to the news.
China, the United States is the largest trading partner and a government spokesman, Wang Hejun, said that Beijing expressed “strong dissatisfaction” with the plans.
He warned that “together with the other WTO members, China is determined that its legitimate interests to defend, and added that the plans “are not only the concern of many trade partners excited, but was also strongly opposed by many local governments and downstream companies in the United States”.
South Korea’s trade Minister Kim Hyun-chong said, the rates, represents a “violation of the WTO rules”.
Samsung called the rates “a tax on all consumers, who wants to buy a washing machine”.