Tariffs Spark New Tax Evasion Accusations in Business Sector

Whirlpool Accuses Rivals of Tax Evasion Through Undervalued Imports

Appliance manufacturer Whirlpool has accused its competitors of evading taxes by undervaluing imported goods. This comes as businesses across the U.S. face the highest tariff levels in nearly a century, raising concerns about the impact on domestic industries and consumer prices.

According to Whirlpool, federal data from import documentation shows that the declared value of appliances began to decline in June. The company claims that this trend suggests some rivals are intentionally underreporting the value of their imports to avoid paying higher tariffs. However, these allegations have been met with strong denials from several major competitors, including GE Appliances, which is owned by China-based Haier.

GE Appliances responded to Whirlpool’s claims by calling them "unsupported" and "irresponsible." In a statement, the company emphasized its commitment to compliance and highlighted its robust customs processes, including third-party audits and reviews. GE Appliances also criticized Whirlpool for what it described as a misuse of U.S. Census data, which is aggregated across all importers and not intended for individual company analysis.

The company further stated that the examples provided by Whirlpool were inaccurate. GE Appliances pointed out that the examples referenced products that were not imported during the cited period and included understated values on other items. Additionally, the company argued that Whirlpool failed to account for differences in models, features, and costs, which distorted their conclusions.

GE Appliances has been actively promoting its investments in U.S. manufacturing. The company plans to invest $6.5 billion by 2029 in U.S. plants and operations. According to GE Appliances President Kevin Nolan, the company has made significant investments in U.S. manufacturing over the past decade and remains committed to supporting American workers and communities.

The allegations against GE Appliances come at a time when the federal government is intensifying efforts to combat tariff evasion. Last month, the Justice Department announced the creation of a cross-agency Trade Fraud Task Force aimed at preventing trade fraud and protecting American workers.

Assistant Attorney General Brett Shumate emphasized that trade fraud deprives the government of vital revenue and threatens domestic industries. He noted that fraudsters often import goods below market value or smuggle prohibited items, harming American manufacturers and contributing to job losses.

Acting Assistant Attorney General Matthew Galeotti added that trade fraud is not a victimless crime and will not be tolerated. The new task force aims to hold lawbreakers accountable and restore fairness in the marketplace.

Tariffs have become a central part of former President Donald Trump’s economic agenda. Using the International Emergency Economic Powers Act, Trump imposed import duties of at least 10% on nearly every nation, with some countries facing rates as high as 50%. These tariffs generated $80.3 billion in revenue between January 2025 and July 2025, according to an analysis of federal data.

Trump has argued that tariffs are essential for restoring manufacturing jobs lost to lower-wage countries and shifting the tax burden away from U.S. families. However, economists, businesses, and public companies have warned that tariffs could lead to higher prices for consumers and create economic uncertainty.

A tariff is a tax on imported goods, typically paid by the importer. While the cost can be absorbed by the importer, it may also be passed on to consumers through higher prices. As the debate over tariffs continues, the focus remains on balancing economic growth, fair competition, and consumer protection.