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Domestic appliances face potential increases in steel costs due to proposed tariffs.

Prepare for potential price increases in your kitchen renovation, as tariffs are being imposed on refrigerators, dishwashers, and other home appliances.

Prepare for potential price hikes in kitchen appliances: Tariffs loom over refrigerators,...
Prepare for potential price hikes in kitchen appliances: Tariffs loom over refrigerators, dishwashers, and other household appliances.

Sneaky Tariffs on Your Appliances: Here's What You Need to Know

Domestic appliances face potential increases in steel costs due to proposed tariffs.

Hey there! You're gonna want to buckle up, folks. The White House is slapping new tariffs on a whole host of items, and your good ol' fridge, washer, and dishwasher might just be on that list. NPR's Alina Selyukh is here to explode the details like a under-the-radar bomb.

What's the Latest Scoop, Alina?

Well, hello there! The Trump administration is extending the current tariffs on steel and aluminum to cover not just the raw materials, but the parts inside finished goods. Right now, there's a 50% tariff on imported steel and aluminum raw materials. But starting June 23, this tariff will apply to the steel and aluminum content inside imported appliances as well. So if you're shipping a dishwasher into the U.S., you'll have to pay the general tariff to import the machine plus a 50% tariff on the metal content of that dishwasher.

Which Appliances Are We Talking About?

In addition to dishwashers, washing machines, dryers, refrigerators with freezers, separate freezers, stoves, ovens, and garbage disposals are also affected by these new tariffs.

Why's This Happening?

It's all part of an attempt to balance out the competition between American manufacturers and foreign ones. The original steel and aluminum tariffs created an unfair advantage for foreign manufacturers. For example, if you want to make a washing machine in the U.S., you have to pay the 50% tariff on imported steel, while your foreign competitor can buy cheaper steel overseas, make the washer overseas and ship it to the U.S. with just a 10% tariff. The new tariffs aim to even the playing field by making imported appliances pay the same tariff on whatever raw material was used inside of it. Companies like Samsung and LG, which have factories in the U.S. but also import products from South Korea and Mexico, will be particularly impacted.

So, What Does This Mean for Me in My Kitchen?

If your dishwasher bites the dust and you have to replace it next month, you might just end up shelling out more cash. During the last round of tariffs, appliance prices went up between 5% and 10% over a 10-month period, even though general inflation was about 2%. This isn't a sure thing, but it's something to keep in mind as you dish up your bucks.

Will This Boost Inflation?

Well, Treasury Secretary Scott Bessent suggested at a Senate hearing that so far, tariffs have not caused a surge in inflation. However, it's worth noting that home appliances were one of the main categories that did experience price increases during the last round of tariffs. Major appliances went up by over 4% in May alone due to the higher cost of steel and aluminum.

In Short:

Get ready to dig a little deeper into your pockets for that shiny, new appliance. The new tariffs on steel and aluminum content in imported appliances might mean higher prices for you, the consumer. Large appliances like refrigerators, washing machines, and dryers will be hit the hardest due to their greater use of steel and aluminum, and prices could increase by as much as 10% or more. So keep an eye on those price tags when you're out shopping!

[1] When expanded, these tariffs will lead to notable increases in consumer prices for major home appliances.[2] Specific appliances affected by these tariffs include refrigerators, washing machines, dishwashers, freezers, dryers, stoves, ovens, and food-waste disposals.[3] The average increase in appliance prices due to previous tariffs was between 5% and 10%.[4] Larger appliances like refrigerators, washers, and dryers are more prone to price hikes due to their higher usage of steel and aluminum.[5] The tariffs now target steel and aluminum content in appliances, not just raw materials, which will further drive up prices for consumers.

  1. The new tariffs on imported appliances, including refrigerators, washing machines, dishwashers, freezers, dryers, stoves, ovens, and food-waste disposals, as part of the extended steel and aluminum tariffs, could potentially lead to notable increases in consumer prices.
  2. With the extension of tariffs to cover the steel and aluminum content inside imported appliances, large appliances like refrigerators, washers, and dryers, which have a higher usage of these materials, may experience price increases of up to 10% or more.

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