The United States Department of Commerce significantly expanded the scope of tariffs on steel. Major household appliances, such as refrigerators and washing machines, are now included in the 50% steel tariff. Korean appliance manufacturers, including Samsung Electronics and LG Electronics, are expected to face setbacks.
On Dec. 12 (local time), the U.S. Department of Commerce announced in the Federal Register that it would add new items to the list of steel derivative products subject to the 50% steel tariff.
The newly included products are refrigerators, washing machines, clothes dryers, dishwashers, freezers, cooking stoves, ranges, ovens, and garbage disposals. Most of them are essential household appliances.
The tariffs on the newly added products will take effect starting the 23rd.
The Trump administration imposed a 25% tariff on steel last March. Subsequently, it decided to impose a 25% tariff on derivative products made from steel based on the value of the steel content.
This is the idea of calculating the value of the steel included in certain products and applying the 25% tariff to that portion.
Afterward, as of the 4th, the Trump administration raised the tariffs on steel and derivative products to 50%.
Experts predicted that applying tariffs on steel components would significantly reduce the price competitiveness of major Korean appliance manufacturers.
Korean appliance giants, including Samsung Electronics and LG Electronics, currently produce some items, such as washing machines, on the U.S. mainland, but they also export significant quantities manufactured in Korea and Mexico.