A second wave of tariffs of 50% on imported steel derivative products is to be imposed from June 23, 2025, in parallel with another broad line-up of household appliances in the U.S., including refrigerators, washing machines, dishwashers, and ovens.
This additional application of President Trump’s steel tariffs amounts to a household price shock extending well beyond raw steel to everyday products found in American homes.
Protecting the Domestic Steel Industry
The tariffs are part of the U.S. government’s effort to protect domestic steel manufacturers by raising the cost of imported steel and steel-based products.
The initial rate of these tariffs was 25% in March and recently doubled to 50%, but they now cover more derivative products. They have been put in place to boost local production and discourage imports, but at the same time, they raise costs for importers and consumers.
Price Hikes on Home Appliances
Consumers can expect significant price hikes on appliances. Steel accounts for roughly 30% of the cost of large appliances, so a 50% tariff on steel content could mean a 15% increase in production cost per unit.
Some portion of this increase in cost is likely to be passed on to buyers, so refrigerators, washers, and dishwashers will become more expensive.
Industry Adjustments by Global Brands
Global appliance giants like Samsung and LG, which rely heavily on imported steel components, are already feeling the impact.
Both companies are looking at expanding manufacturing in the U.S. and shifting supply chains to manage the impact of tariffs. Nonetheless, these changes may not fully offset the cost increases, meaning consumer prices will still rise.
Supply Chain Disruptions and Volatility
The tariffs create volatility in steel and appliance markets, impacting futures and supply chains. Products with higher steel content also face heavier tariffs, complicating pricing and inventory decisions for manufacturers and retailers.
This domino effect could result in longer lead times and product shortages, subsequently putting added upward pressure on prices.
Impact on Related Industries and Fabricated Metal Products
The tariffs also affect suppliers of fabricated metal products that are used to make appliances and in other sectors. Given how thin the profit margins of many suppliers are, it could drive them out of business with higher costs.
This may disturb supply chains in the automotive, manufacturing, and construction sectors, indirectly affecting consumers with higher prices and reduced accessibility.
Consumer Behavior Shifts
Rising appliance prices are prompting consumers to reconsider their purchasing decisions. Others may delay purchasing new appliances or look for cheaper models.
But there is still brand loyalty for reliable producers, and some shoppers are willing to pay more for vital home products. Discounts and sales will become more critical in influencing buying behavior.
Political and Policy Responses
The tariff increase has prompted calls from corporations and lawmakers for the government to protect the industry.
Some senators from states with strong manufacturing ties advocate for subsidies or policy adjustments to alleviate the burden on consumers and businesses.
The political debate highlights the tension between protecting domestic industries and controlling consumer costs.
How to Navigate the Price Increases
Experts recommend that consumers consider purchasing necessary appliances before the tariffs take effect to avoid higher prices.
Shopping during sales, buying in bulk, or choosing models with less steel content can help offset costs. Additionally, exploring alternative brands or refurbished appliances may offer short-term relief.
Broad Economic Ripples Ahead
What begins as a tariff on steel is likely to ripple across the economy, raising the price of home appliances, disrupting global supply chains, shifting consumer behavior, and prompting political action.
The expanded tariffs underscore the complex interplay between trade policy and everyday costs, with the effects likely to be felt in households and industries for months to come.
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