U.S. Imposes 50% Tariff on Steel-Derived Products, Effective June 23

The U.S. Department of Commerce previously announced that, starting June 23, a 50% tariff would be imposed on various steel household appliances, including dishwashers, washing machines, and refrigerators, now categorized as “steel-derived products.” According to a notice by the Bureau of Industry and Security (BIS), eight categories of appliances and related items will be uniformly subject to this rate, with duties calculated based on the value of their steel components.

The affected categories include combination refrigerators and freezers, small and large dryers, washing machines, dishwashers, chest and upright freezers, cooking stoves, ranges and ovens, food waste disposers, and welded metal racks. The new rule applies to goods entering or withdrawn from U.S. bonded warehouses on or after 00:01 a.m. ET, June 23, 2025. However, items made with steel melted and cast in the U.S. may be exempt, even if processed abroad.

This marks the second expansion of tariff scope since March, following Trump's announcement on February 10 that steel and aluminum tariffs would rise to 25% beginning March 12. On June 3, another executive order raised those tariffs to 50% and authorized further inclusion of steel-containing products.

A joint study by the University of Chicago and the Federal Reserve revealed the policy created about 1,800 jobs but at a cost of USD 817,000 per job. Tariffs on washing machines also caused price increases in untaxed dryers due to their bundled sales.

As the U.S. threatens to impose 50% tariffs on EU exports by July 9, it is demanding concessions seen by EU officials as "imbalanced and unilateral." According to expert analysis cited by CCTV News, negotiations face significant divergences, and the EU is preparing countermeasures should talks fail.

Bloomberg reported on June 21 (ET) that U.S. demands include controversial fish export quotas, non-reciprocal tariffs, and economic security requirements. Insiders noted that the best outcome would be a principle-based agreement allowing the talks to continue beyond the July 9 deadline.

Even with a deal, many Trump-era tariffs may remain. The EU, while seeking a mutually beneficial arrangement, will evaluate any outcome before accepting potential imbalances. Currently, in addition to a 10% baseline tariff during the reciprocal tariff suspension period, the EU faces a 25% auto tariff and 50% on steel and aluminum. If no consensus is reached by July 9, tariffs on most EU goods could rise from 10% to 50%.

At the G7 Summit in Canada, Trump reportedly expressed strong dissatisfaction to EU Commission President Ursula von der Leyen, particularly regarding trade barriers faced by U.S. automakers.
In response, the EU has approved retaliatory tariffs on EUR 21 billion in U.S. goods, including soybeans, poultry, and motorcycles, targeting politically sensitive states like Louisiana. An additional EUR 95 billion tariff list has been prepared, covering products such as Boeing aircraft, American-made cars, and bourbon whiskey.

When asked if the EU would retaliate if baseline tariffs remain, von der Leyen stated, “From the beginning, we have said we have different tools on the table. They will remain on the table until the end. Today is no exception.” Despite differences, technical-level negotiations continue. EU Chief Trade Negotiator Maroš Šefčovič recently met with U.S. Trade Representative Jamison Greer and Commerce Secretary Howard Lutnick.

Talks are ongoing over key sectors, including steel and aluminum, automobiles, pharmaceuticals, semiconductors, and civil aircraft, as well as tariff and non-tariff barriers, strategic procurement, and economic security.