Lifeline for Defy as tariffs hiked on dumped washing machines

22 Jul 2025

22 July 2025

Business Live

by Kabelo Khumalo

The International Trade Administration Commission of SA (ITAC) has provided a lifeline to SA’s home appliances major Defy, slapping hefty provisional tariffs on imports of top-loading washing machines from China and Thailand. Defy, which traces its roots in Durban from 1905, approached ITAC requesting that it impose antidumping duties of 21.48% on China and 67.11% on Thailand. ITAC’s investigation found prima facie proof of dumping of machines originating in or imported from China and Thailand.

However, Defy was not granted the duties it wanted on imports from China. The commission levied 9.39% duties on products from Hefei Midea Laundry Appliances and Wuxi Little Swan Electric, while products from Hisense Refrigerator will attract 8% duties. All other producers from China will attract 13.42% duties, while products from Thailand got an eye-watering 67.11% in duties.

The duties will be imposed on the importation of top-loading washing machines with a dry linen capacity exceeding 10kg, but less than 17kg. The provisional duties will be in place for about six months, while ITAC does further work to find a permanent solution.

Defy alleged that a threat of material injury existed and submitted evidence regarding the freely disposable capacity of the exporters, a significant increase of the alleged dumped imports, the state of the economy in China and Thailand and prices of imports that will have a significant undercutting or suppressing effect on domestic prices.

The allegation of dumping is based on the comparison between the normal value in China and Thailand and the export prices from China and Thailand. Defy submitted evidence showing that it experienced injury in the form of price suppression and undercutting, decline in profits, decline in return on investments, negative effects on cash flow, and increase in inventories in 2022-24. Defy produces more than 2-million products a year in its two factories in SA.

Meanwhile, ITAC has called a public hearing for next month on its investigation involving safeguard measures against the increased imports of corrosion-resistant steel coils. The commission has already imposed a provisional 52.34% tariff on imports of corrosion-resistant steel coil to prevent “further injury” to the domestic market, in a move that is a major boost to ArcelorMittal SA (Amsa).

Steel coils are widely used in key downstream industries such as construction, roofing and cladding, appliance manufacturing and the automotive and engineering sectors. The application by Amsa was supported by Safal Steel.

“The commission made a preliminary determination that there is clear evidence that the increased imports have caused serious injury to the [Southern African Customs Union] industry,” ITAC said on Friday.

“The commission further made a preliminary determination that there are critical circumstances where a delay in the imposition of measures would cause damage that would be difficult to repair.”