Tips on navigating tariffs and price increases
By Steve Sheinkopf, Yale Appliance
Although the Trump administration’s tariff policy is still in play, the appliance industry is preparing for price repercussions. Helping to break it all down is Steve Sheinkopf, CEO of BrandSource member Yale Appliance, who provided some perspective and an educated outlook in a recent company blog. An edited version follows.
President Trump has officially signed the tariff bill into law. This will have a profound impact on appliances.
To understand the potential impact, let’s first look at tariff policies from 2017-2021 and their effect on the appliance industry. During this period, a series of tariffs significantly influenced appliance pricing and availability.
The Last Go-Around
Steel and Aluminum Tariffs (March 2018): A 25% tariff was placed on imported steel and imported aluminum faced a 10% tariff. These materials are essential for appliance construction, leading to higher production costs and, ultimately, increased prices for consumers.
China Tariffs (2018–2019): In response to alleged unfair trade practices, the U.S. imposed tariffs on roughly $370 billion worth of Chinese goods. These measures disrupted established supply chains and resulted in over $74 billion in additional tariffs collected by the U.S. government.
Washer Tariffs (January 2018): There was also a 20% tariff applied to the first 1.2 million washing machines imported annually, with a 50% tariff on quantities exceeding that threshold. But many appliance manufacturers found ways to avoid these tariffs over time, mitigating some of their impact.
The tariff strategy had significant financial implications for the appliance industry. Manufacturers were forced to seek alternative suppliers or absorb increased costs, further compounded by the tariffs on steel and aluminum, which affected all manufacturers. And as prices increased, many of the 10%–35% promotional discounts that we once relied on disappeared.
In the end, the biggest winner was the American worker. Manufacturers like LG and Samsung created thousands of U.S. jobs to avoid import tariffs on finished products. Electrolux also eventually invested in the U.S. after some initial hesitation.
However, no company could fully escape the impact of tariffs on steel and aluminum. These raw materials remain a costly challenge for appliance manufacturing, affecting every brand.
And that’s the crux of the issue. Steel and aluminum are essential to every appliance, and tariffs on these materials, which are set to start on March 12, send shockwaves through the entire industry.
The Current Tariffs
Tariffs were set at 25% on Mexico and Canada and 10% on China. Here’s how they directly affect appliances:
Mexico: Affected appliances and components include refrigerators, freezers, cooking appliances (ranges, cooktops, ovens), dishwashers, washers/dryers, motors, compressors and control boards. Expected price increases range from 5%-15%.
Canada: Affected appliances and components include high-end refrigeration (Sub-Zero, True), steel and aluminum parts, water filtration systems. Expected price increases range from 2%-8%. We import a ton of wood from Canada, which means the cost of building a house just went up.
China: Affected appliances and components include budget refrigerators, microwave ovens, motors, fans, LED lighting, circuit boards and compressors. Expected price increases range from 5%-20%.
Canada, Mexico and China will all impose tariffs on American goods in response, and this could spiral out of control. So be careful.
What This Means
Any Chinese imports will become significantly more expensive. And while many appliance manufacturers have U.S.-based production, certain products — especially cooking appliances and refrigeration units — will be hit hard due to reliance on imported components and tariffs on steel.
As with previous tariffs, manufacturers are likely to pass these increased costs directly to consumers, leading to higher appliance prices across the board. Some price increases have already been implemented, although manufacturers insist they weren’t preemptive:
- Thermador and Bosch raised prices by an average of 3%-7% as of Jan. 1. However, they also reduced some programs by 2%, bringing the net increase closer to 5%-10%.
- LG implemented a 6% price increase on Jan. 15, while GE scheduled its hike for Feb. 15. Sub-Zero announced an 8%-13% increase set for March 1.
- Ninety-nine percent of all specialty undercounter refrigerators are expected to see price hikes of 8%-25%, since most are manufactured in China.
You might assume that American manufacturers like Sub-Zero, BlueStar, Viking and Whirlpool would be unaffected. However, they rely heavily on foreign components, especially steel and key compressor parts. True and Whirlpool will adjust their prices based on steel tariffs, making their increases more unpredictable.
The Good News
In 2020, the appliance industry faced the perfect storm: supply chain issues, tariffs and a frenzy of home improvement spending. This time, there’s no buying frenzy and no supply chain crisis — at least not yet.
In addition, the EU (European Union) has been spared, so brands like AGA, La Cornue, Miele and Beko remain unaffected, at least in the short term.
Also, many retailers still offer zero-percent financing for 12 months, allowing customers to spread the cost out over a year.
Advice to Consumers
Here’s my best advice (my educated guess) for shoppers: If they need appliances soon, they should buy them now. They’ll likely save 6%–10% by purchasing before tariffs fully take effect.
For projects planned further out, they should get a quote from their local dealer and lock in deals before major increases hit or before the constant promotions fluctuating between 10%–35% disappear.
A Note About Pricing: Pricing on this blog is for reference only and may include time-sensitive rebates.
Steve Sheinkopf is the third-generation CEO of BrandSource member Yale Appliance and is a lifelong Bostonian and Bruins fan. With over 38 years of industry experience, he is a trusted source of information for consumers on how to buy and repair appliances.
