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4w ago

U.S. to Impose 50 Percent Steel Tariff on Home Appliances as Samsung and LG Rethink Production

Effective June 23, the 50 percent duty on steel-containing appliances is spurring Samsung and LG to explore price hikes alongside production shifts to protect margins.

A customer looks at LG washing machines and dryers.
refrigerators being manufactured
This photo, released by AFP, shows home appliances, including washing machines, clothes dryers and refrigerators, for sale at a home improvement store in Falls Church, Virginia, on Feb. 3, 2025. (Yonhap)
This file photo taken April 14, 2025, shows washing machines and refrigerators displayed at a home appliances market in Seoul. (Yonhap)

Overview

  • The U.S. Commerce Department will levy a 50 percent tariff on imports of refrigerators, washing machines, dryers and other appliances based on their steel content starting June 23.
  • Samsung Electronics and LG Electronics are reviewing global manufacturing strategies, including expanding output at U.S. plants in Tennessee and South Carolina to bypass the tariff.
  • South Korean exporters rely heavily on Mexican facilities that shipped about $2.4 billion in appliances to the U.S. last year, leaving roughly $3.84 billion in trade subject to the new levy.
  • Industry observers warn the tariff could raise per-unit production costs by up to 15 percent and trigger consumer price hikes akin to the double-digit increases seen after 2018 levies.
  • South Korea’s Ministry of Trade, Industry and Energy convened emergency talks and pledged support measures to help local appliance makers navigate the new U.S. tariff scheme.