Samsung and LG face setback as US expands steel tariffs

The U.S. Department of Commerce has significantly broadened the scope of its steel tariffs to include a wide array of household appliances, a move that could deal a blow to South Korean electronics giants like Samsung and LG.

In a notice published in the Federal Register on June 12, the Commerce Department announced that it would expand the list of derivative products subject to a 50 percent steel tariff. Newly included items range from refrigerators and washing machines to ovens, dishwashers, freezers, dryers, stovetops, and garbage disposals—products that make up the core of most modern households.

The revised tariffs are scheduled to take effect on June 23.

The expansion follows a series of escalating trade measures under the Trump administration. In March, a 25 percent tariff was imposed on steel itself. That was soon extended to derivative products, with duties calculated based on the estimated value of steel contained in each item.

Then, on June 4, the administration doubled the rate to 50 percent, citing the need to protect domestic industry from what it described as unfair foreign competition.

Trade experts warn that the latest move could significantly erode the price competitiveness of Korean-made appliances in the U.S. market. While Samsung and LG do operate manufacturing plants in the United States for some products—such as washing machines—a substantial portion of their exports still originate from factories in South Korea and Mexico.

With tariffs now hitting finished goods as well as raw materials, the pressure on Korean manufacturers is expected to intensify in the months ahead.