Mexican home appliance manufacturers brace for even more US tariffs

A bevy of household appliances made in Mexico will soon have to contend with U.S. President Donald Trump’s expanded steel tariffs, according to a U.S. Commerce Department notice posted earlier this week.

Imports of eight product lines — combined refrigerator-freezers, small and large dryers, washing machines, dishwashers, chest and upright freezers, cooking stoves, ranges and ovens, food waste disposals, and welded wire racks — will be impacted as of June 23, the notice said.

Mabe building and flags
Unless Economy Minister Marcelo Ebrard can reach an agreement with the U.S. soon, Mexican domestic appliance manufacturers will be looking at some steep tariffs. (Ultima Hora SLP/on Facebook)

This news comes as Mexico’s Economy Minister Marcelo Ebrard is negotiating a deal to reduce or eliminate Trump’s 50% tariffs on steel imports up to a certain volume.

An industry source told Reuters that a likely outcome would include a quota arrangement, under which a specified volume from Mexico could enter duty free or at a reduced rate and any imports above that level would be charged the full tariff, now at 50%.

The Mexican government has yet to respond to the new Commerce Department notice.

This latest announcement is the second time that the Trump administration has expanded the list of “steel derivative products” subject to the tariffs on imported steel and aluminum that were imposed at 25% in March. 

“The tariff imposed … will be assessed on these derivative products for the value of the steel content in each product,” a Federal Register posting said, according to Reuters.

The new tariffs of 50% have generated widespread concern for South Korean electronics giants Samsung Electronics and LG Electronics who sell a wide range of home appliances in the U.S. market, according to The Korea Herald. 

While both companies produce appliances in the U.S., the bulk of their products sold in the U.S. market are produced outside of the U.S., in Mexico as well as at home in South Korea. Much of the steel used in these appliances is also sourced from outside the U.S., the Herald reported.

Both Samsung and LG set up production facilities for home appliances in the U.S. recently, primarily in response to Trump’s tariff policies during his first term in office (2017-2021).

The new tariffs appear to be bad news for Mexico, the Herald reported, as the two companies “are reportedly considering relocating some of its production in Mexico to its U.S. plants.” 

“We are closely monitoring the situation in response to the tariffs,” one industry official told the Herald, speaking on condition of anonymity.

With reports from El Economista, Reforma, El País, The Korea Herald and Reuters

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