The Trump administration has announced plans to impose a 50% tariff on steel used in certain home appliances. This includes refrigerators, washing machines, and dryers. The new tariff is expected to affect major manufacturers like Samsung Electronics and LG Electronics, which produce many of these appliances in Mexico for export to the United States.
On June 12, the U.S. Department of Commerce published in the Federal Register that several home appliances will be added to the list of steel products subject to the 50% tariff. These products include refrigerators, dryers, washing machines, dishwashers, freezers, cooking stoves, ranges, ovens, and food waste disposers. The tariff will take effect starting June 23 and will be based on the steel content of the products.
Samsung Electronics currently manufactures some home appliances in North Carolina but also produces refrigerators, washing machines, and dryers in Queretaro, Mexico for the U.S. market. Similarly, LG Electronics makes many products in Tennessee but produces refrigerators in Monterrey, Mexico. These products will now face the new steel tariff.
Industry experts say this move recalls the 2018 tariffs when then-President Trump imposed emergency import restrictions and extra tariffs on washing machines from countries such as Korea and China. At that time, Whirlpool, which had lost market share to Samsung and LG in washing machines, petitioned the U.S. government, leading to the tariffs.
This latest action is again seen as targeting Korean companies. As of the third quarter of last year, LG Electronics held the largest share of the U.S. home appliance market with 21.1%, while Samsung Electronics was second with 20.9%. General Electric (GE) and Whirlpool ranked third and fourth. Because of the tariffs, Samsung and LG may have to consider relocating some of their manufacturing operations to the United States to avoid higher costs.
