BUSINESS

Analysis: New U.S. Tariffs Mean Tough Times Ahead for Appliance-Makers

Published: Jun. 16, 2025 7:13 p.m. GMT+8

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The U.S. has imposed a tariff on “steel derivative products,” which include home appliances, as part of a broader effort to reshore manufacturing.

Chinese home appliance manufacturers are bracing for a fresh wave of disruption after the U.S. announced a new tariff on consumer appliances containing steel.

The 50% duty on all imports of so-called “steel derivative products,” set to take effect on June 23, will apply to household appliances such as refrigerators, washing machines, dishwashers and cooking stoves, according to a notice issued by the U.S. Department of Commerce on Thursday. The move expands existing tariffs on aluminum and steel, it said.

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The U.S. will impose a 50% tariff on steel-containing appliances from June 23, impacting imports like refrigerators and washing machines, with duties based on steel content.
Despite a recent tariff truce lowering some rates to 10%, many previous steel, aluminum, and fentanyl-related tariffs remain in effect, and the new tariffs apply globally.
U.S. appliance costs are expected to rise, pressuring retailers and manufacturers, while domestic U.S. production remains 50%-100% costlier than in China.

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Who’s Who

Guosen Securities Co. Ltd.: Guosen Securities Co. Ltd. is a financial firm that published a report. This report highlighted that U.S. domestic production costs could be 50% to 100% higher than in China due to wage differences alone, with further increases from compliance, infrastructure, and management expenses. Guosen's analysts also noted that in 2023, over half of televisions, refrigerators, and vacuum cleaners sold in the U.S. were imported, with Chinese goods accounting for significant portions of these imports.

Counterpoint Research: Counterpoint Research is mentioned through its senior analyst, Ivan Lam. Lam states that increased tariffs will significantly impact American retailers and OEM ecosystems, leading to higher costs for everyone in the appliance market. He suggests larger brands may pass these costs to consumers, while smaller brands might exit the U.S. market.

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What Happened When

2023：: In this year, more than half of televisions, refrigerators, and vacuum cleaners sold in the U.S. were imported; Chinese goods made up significant proportions of several categories.

May 12, 2025：: China and the U.S. agreed to a tariff truce, with the U.S. lowering tariffs on imports from China to 10% from 125%.

June 12, 2025：: The U.S. Department of Commerce issued a notice announcing a new 50% tariff on consumer appliances containing steel, set to take effect later.

June 13, 2025：: An executive at a major Chinese appliance firm commented on the new tariffs and discussed ongoing evaluation of the potential impact.

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