Tariffs prompt new wave of tax dodging allegations among businesses

Audio By Carbonatix

(The Center Square) – Appliance maker Whirlpool accused rivals of dodging taxes by undervaluing imports as businesses contend with the highest tariff levels in nearly a century.

Whirlpool said federal data from import paperwork shows that the declared value of appliances started to fall in June. 

Competitors denied the allegations. China-based Haier owns GE Appliances.

"For Whirlpool to lodge unsupported claims with the Administration, based essentially on guesswork, is irresponsible and inappropriate. GE Appliances takes compliance seriously, and we have robust customs compliance processes in place, including third-party reviews and audits. We value competition and believe it is good for U.S. consumers, but this attack from Whirlpool looks like frustration over their own lagging performance," GE Appliances said in a statement. "Whirlpool's claims are based on a misuse of U.S. Census import data, which is aggregated across all importers and cannot be used to determine the import values of any individual company."

GE Appliances said the examples Whirlpool shared with the Kentucky-based company were incorrect. 

"The examples Whirlpool shared with us are inaccurate and do not reflect the actual values we declared to U.S. Customs. They referenced products we did not import during the cited period and understated values on other products by half. They also failed to account for significant differences across models, features, and costs – further distorting their conclusions," GE Appliances said. "GE Appliances complies fully with all trade laws and reporting requirements, and we stand by the accuracy of our data. We are demanding that Whirlpool retract its statements to the Administration and cease disseminating inaccurate information about our company."

GE Appliances, which has about 15,000 employees, has been touting its U.S. investments. GE Appliances plans to invest $6.5 billion by 2029 in U.S. manufacturing plants and operations.

"We are defining the future of manufacturing at GE Appliances by investing in our plants, people, and communities," GE Appliances President Kevin Nolan said in a statement last month announcing some of the investments. "No other appliance company over the last decade has invested more in U.S. manufacturing than we have, and our $3 billion, five-year plan shows that our commitment to U.S. manufacturing will continue into the future."

The allegations come amid a federal crackdown on tariff evasion. 

Last month, the Justice Department announced a cross-agency Trade Fraud Task Force to prevent tariff fraud.

"The Civil Division will coordinate with law enforcement partners to bring to justice any parties attempting to harm American workers through evasion of tariffs and other duties," Assistant Attorney General Brett Shumate said at the time. 

Federal officials said trade fraud "deprives the government of vital revenue used to reinvest in America, but also threatens critical domestic industries, undermines consumer confidence, and weakens national security."

"Fraudsters seeking to destabilize and profit off of American markets increasingly are attempting to import below-market, industry-destabilizing goods without paying lawful tariffs and duties or by smuggling prohibited items that violate intellectual property rights of American companies or are otherwise illegal," the Justice Department said. "These fraudsters have harmed American manufacturers and contributed to the loss of American jobs, often with financial backing from America's adversaries who benefit from the fraud."

The new task force aims to end that.

"For years, nefarious importers and their co-conspirators have put law-abiding businesses in the United States at a competitive disadvantage – and cheated the American public of funds – by brazenly committing trade fraud," Acting Assistant Attorney General Matthew Galeotti said in August. "Trade fraud is not a victimless crime, and it won't be tolerated."

Trump has made tariffs the centerpiece of his economic agenda. Trump used a 1977 law that doesn't mention tariffs to reorder global trade in a matter of months through tariffs to try to give U.S. businesses an advantage in the world market. Using tariffs under the International Emergency Economic Powers Act, Trump hit nearly every nation with import duties of at least 10%. Some countries face higher rates, up to 50%.

New tariffs raised $80.3 billion in revenue between January 2025 and July 2025 before accounting for income and payroll tax offsets, according to an analysis of federal data from the Penn Wharton Budget Model.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families and pay down the national debt.

A tariff is a tax on imported goods paid by the person or company that imports the goods. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.

Economists, businesses and some public companies have warned that tariffs could raise prices on a wide range of consumer products.