Breaking: Sudden Policy Shift Targets Home Appliances
The US Department of Commerce announced on June 13, 2025, a major revision to Proclamation 10896, expanding Section 232 steel derivative tariffs to 8 home appliance categories. The 50% duty increase takes effect June 23, 2025, targeting products previously exempt from steel/aluminum tariffs.
8 Affected Product Categories (with HTSUS Codes)
- Combination refrigerators/freezers (HTSUS 8418.10.00)
- Dryers (small & large): HTSUS 8451.21.00 / 8451.29.00
- Washing machines: HTSUS 8450.11.00 / 8450.20.00
- Dishwashers: HTSUS 8422.11.00
- Chest & upright freezers: HTSUS 8418.30.00 / 8418.40.00
- Gas/solid fuel stoves/ovens: HTSUS 8516.60.40
- Food waste disposers: HTS 8509.80.20
- Welded wire racks: HTS 9403.99.9020
Note: HTS 9403.99.9020 products, as aluminum derivatives, remain subject to tariffs under Proclamation 10895.
Tariff Calculation Changes
- Pre-June 23: Tariff rate = 301 Duty + Fentanyl Duty + Countervailing Duty
- Post-June 23: Tariff rate = 301 Duty + Fentanyl Duty + Section 232 Steel Derivative Duty (ad valorem based on steel content)
Policy Background: Escalating Tariff Measures
- June 3, 2025: Proclamation 10947 raised Section 232 steel/aluminum tariffs from 25% to 50%, exempting only UK products.
- Expanded Definition: The new policy extends “steel derivatives” to end-use appliances, aiming to protect domestic manufacturing.
Impact on Chinese Exporters
- Cost Surge: Steel components account for 20-40% of product value in Chinese appliance exports to the US (2024 data).
- Hardest Hit: White goods manufacturers, cross-border e-commerce supply chains, and SMEs reliant on US markets.
Urgent Response Strategies for Businesses
- Tariff Engineering:
- Re-evaluate product composition to minimize steel content.
- Explore tariff exclusion applications via CBP channels.
- Supply Chain Diversification:
- Shift production to SE Asia or Mexico to bypass tariffs.
- Negotiate cost-sharing agreements with US importers.
- Legal & Compliance Measures:
- Engage customs brokers to verify HTSUS classification accuracy.
- Monitor steel content valuation by CBP during import declaration.