US Steel Tariffs Rattle Samsung and LG’s Home Appliance Business

The US government’s decision to expand steel tariffs to a broader range of household appliances has triggered concern among global electronics giants Samsung and LG, according to an exclusive report by Reuters.

The new 50% tariff—set to take effect from June 23—will be applicable to key appliances such as refrigerators, washing machines, dishwashers, ovens, and garbage disposers.

The move, part of a broader effort by the US Commerce Department to protect domestic steelmakers, could significantly disrupt supply chains for the two South Korean firms, which rely heavily on imported steel components.

While both the companies are running their manufacturing units in the United States and Mexico, a considerable portion of their output relies on steel sourced from abroad.

Also Read: South Korea Faces Trade Tangles and Tariff Terrors Ahead of Snap Election—Can They Seal Deal with the U.S.? | Republic World

As per industry observers, steel typically accounts for around 30% of the cost of large home appliances, which could raise per-unit production costs by up to 15%. This could leave Samsung and LG with little choice but to pass on the additional burden to consumers or realign their manufacturing strategy.

Media reports suggest that LG has already hinted at price hike and is reportedly reviewing plans to scale up operations at its Tennessee facility. Samsung, on the other hand, is also weighing similar options, including boosting output at its South Carolina plant and recalibrating its supply chain routes to minimise the impact.

For U.S. consumers, the development could spell steeper prices and limited availability. Analysts indicated that when similar tariffs were imposed on washing machines in 2018, led to double-digit price hikes. With this latest round of levies, the likelihood of costlier appliances looms again.

While the tariffs aim to bolster American manufacturing, companies like Samsung and LG are now looking to reconfigure operations and minimise the financial fallout.