US Tariff Shock: 50% Duty Hike on 8 Appliance Categories Hits Exporters

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)

  1. Combination refrigerators/freezers (HTSUS 8418.10.00)
  2. Dryers (small & large): HTSUS 8451.21.00 / 8451.29.00
  3. Washing machines: HTSUS 8450.11.00 / 8450.20.00
  4. Dishwashers: HTSUS 8422.11.00
  5. Chest & upright freezers: HTSUS 8418.30.00 / 8418.40.00
  6. Gas/solid fuel stoves/ovens: HTSUS 8516.60.40
  7. Food waste disposers: HTS 8509.80.20
  8. 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

  1. June 3, 2025: Proclamation 10947 raised Section 232 steel/aluminum tariffs from 25% to 50%, exempting only UK products.
  2. Expanded Definition: The new policy extends “steel derivatives” to end-use appliances, aiming to protect domestic manufacturing.

tariff

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

  1. Tariff Engineering:
    • Re-evaluate product composition to minimize steel content.
    • Explore tariff exclusion applications via CBP channels.
  2. Supply Chain Diversification:
    • Shift production to SE Asia or Mexico to bypass tariffs.
    • Negotiate cost-sharing agreements with US importers.
  3. Legal & Compliance Measures:
    • Engage customs brokers to verify HTSUS classification accuracy.
    • Monitor steel content valuation by CBP during import declaration.

Official Notices (Click to Access)

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