President Donald Trump‘s administration will extend existing 50% steel tariffs to imported home appliances, including refrigerators, dishwashers, washing machines, and cooking ranges, beginning June 23.
What Happened: The Commerce Department announced Thursday that the expanded tariffs will cover eight major appliance categories: combined refrigerator-freezers, small and large dryers, washing machines, dishwashers, chest and upright freezers, cooking stoves and ranges, food waste disposals, and welded wire racks, reported Reuters.
According to the Federal Register posting, tariffs will be “assessed on these derivative products for the value of the steel content in each product.”
This marks the second expansion of Trump’s steel tariff program since March, when the administration initially raised import duties from 25% to 50% on steel and aluminum. The first expansion in March added nearly 300 product categories ranging from horseshoes to bulldozer blades.
Trump doubled steel tariffs to 50% on May 31, calling it a “major announcement” to protect American jobs. Speaking at a U.S. Steel facility in Pennsylvania, Trump said he initially considered 40% but raised it after industry feedback. “At 25% they can sorta get over that fence,” Trump stated. “At 50% nobody’s getting over that fence.”
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Why It Matters: The appliance expansion creates new cost pressures for manufacturers and consumers already facing elevated steel prices. Industry analysts warn the tariffs could add substantial costs to production.
Bloomberg’s Matthew Miller noted that steel represents approximately 2,800 pounds per vehicle, translating to “almost $2,000 of cost for each car” as hot-rolled steel approaches $1,000 per ton.
Ford Motor Co. (NYSE:F) faces particular exposure due to its U.S.-centric manufacturing model. Alex Tsepaev, chief strategy officer at B2PRIME Group, told Benzinga that “A 50% tariff could inflate COGS significantly just as pricing power erodes in both EV and ICE segments.” Ford suspended financial guidance in Q1 amid tariff uncertainty following a 65% profit decline.
The 2018 Trump-era steel tariffs provide historical context. While U.S. steel production rose slightly, a 2023 International Trade Commission report found the tariffs reduced output in vehicle, machinery, and tool sectors by over $3 billion by 2021, suggesting a net negative economic impact.
The U.S. imported $31.3 billion in iron and steel last year, with Canada supplying $7.6 billion worth of materials. The expanded tariffs take effect as domestic steel prices have already climbed due to reduced foreign competition since March.
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