The Trump administration is set to extend its 50% steel tariffs to include consumer appliances that contain steel, such as refrigerators, washers, dryers, dishwashers, ovens, freezers, garbage disposals, and wire racks. This move, announced by the Commerce Department and scheduled to take effect June 23, will impose an additional 50% tax on the steel content of these products.
This decision aims to close a loophole where foreign manufacturers avoided tariffs by shipping finished appliances rather than steel components. By applying tariffs directly to these appliances, American-made products are expected to become more competitive against cheaper imports made with low-cost parts and labor.
President Trump has emphasized that doubling steel tariffs from 25% to 50% is necessary to protect the struggling U.S. steel industry, claiming that without these tariffs, American steel production would have disappeared, leading to factory closures and reliance on foreign steel.
While the tariffs may help revive the domestic steel industry, they also raise costs for American manufacturers in sectors like construction and manufacturing — industries the administration aims to support. Since the initial 25% tariff was introduced, domestic steel prices have risen due to reduced foreign competition.
During Trump’s first term, steel tariffs led to modest production growth but also increased costs for industries producing cars, tools, and machinery, reducing output by over $3 billion in 2021, according to a 2023 International Trade Commission report.
Trump’s earlier tariffs on washing machines, ranging from 20% to 50%, were initially welcomed by U.S. manufacturer Whirlpool. However, the company criticized the steel tariffs for significantly increasing production costs, which raised washing machine prices by about $90 and created only around 1,800 new American jobs, based on data from the Federal Reserve and the University of Chicago.
Overall, while tariffs have bolstered American steel producers, they have also contributed to higher costs for appliances and other goods reliant on steel.
