Trump’s 50% Steel Tariffs Could Make Household Appliances More Expensive

A 50% tariff on imported “steel-derivative products” is set to take effect on June 23, according to a notice released by the U.S. Commerce Department. Once the new customs fee begins, consumers are likely to see price hikes on several household appliances, like dishwashers, washers, dryers, garbage disposals, and refrigerators.

In March, the Trump administration implemented a 25% tariff on steel and aluminum. Earlier this month, the fee was raised to 50%, and the recent update now includes the amount of steel used to make consumer appliances.

“The tariff imposed … will be assessed on these derivative products for the value of the steel content in each product,” wrote the department.

Prior to the inclusion, foreign makers of appliances could skirt the metal tariffs by manufacturing and assembling products before shipping them to the U.S. Overseas manufacturers could lower costs using cheap labor and inexpensive parts, making it easier to charge a lower price for appliances than American equivalents.

By charging a tariff based on the amount of metal in an appliance could equal the playing field. Foreign appliance sellers would likely pass the extra fees to consumers by charging more, putting the price tag more in line with U.S. competitors.

Tariffs Can Lead to Price Hikes

While the tariffs have the potential to help U.S. businesses, it may ultimately hurt customers. Current consumer sentiment suggests the majority of Americans think President Trump’s tariffs will raise prices. They might be right.

In May, the Federal Reserve Bank of New York asked businesses how they were dealing with tariffs. In the survey, many companies admitted to increasing prices to cover the extra expenses.

“About three-quarters of businesses facing tariff-induced cost increases in both the manufacturing and service sectors passed along at least some of these higher costs to their customers by raising prices,” the New York Fed wrote, per Fox Business.

Not only did many of these companies raise prices, but they do so very quickly. Around 50% of both manufacturing and service firms increased prices within 30 days after tariff fees were imposed, with a few doing it within days. Other firms plan to raise prices within 90 days.