On the heels of escalating global trade tensions, the U.S. has released new guidance targeting home appliances that contain steel-derived components. This move effectively broadens the scope of tariffs originally imposed on raw steel, now extending them to finished goods such as refrigerators, washing machines, and microwaves.
Here’s what this means for USA importers:
Expanded Tariff Coverage
Home appliances that use steel-based casings, structural supports, or internal components may now be subject to additional duties, even if the raw materials were not directly imported.
Stricter Compliance
Importers must declare if products contain steel derivatives, or face retroactive penalties. U.S. Customs is expected to increase enforcement with more inspections and document checks.
China in Focus (Without Being Named)
Although not directly targeted, Chinese-made appliances are the most impacted due to their volume and price competitiveness. This move may push suppliers to rethink their strategy:
- Move assembly lines to third countries (e.g., Mexico, Vietnam)
- Reduce steel usage
- Raise prices or limit U.S. exposure
Market Implications
- Short-term: Import costs will rise; consumer prices may follow.
- Mid-term: Companies may shift supply chains or reroute goods.
- Long-term: Could trigger more local manufacturing or regional partnerships.
Pro Tip for Exporters:
Be sure your freight forwarder or customs broker is familiar with the new HTS codes and documentation requirements. Missteps could cost you dearly in delays and backdated duties.