# The Ripple Effect of U.S. Tariffs: From Steel to Household Appliances

- Link: https://www.thailand-business-news.com/economics/234935-tracing-the-u-s-tariff-domino-effect-from-steel-to-electrical-appliances
- Published: 2025-07-21T23:51:00+07:00
- Author: Economic Intelligence Center Siam Commercial Bank

**The U.S. has implemented tariffs of up to 50% on steel-containing electrical appliances,
heavily affecting Thai exports, particularly refrigerators and washing machines.
In response, Thai manufacturers must adapt by revising strategies, exploring alternative
markets, and driving innovation to lessen the impact.**

## U.S. Imposes High Tariffs on Steel-Containing Electrical Appliances

The United States has introduced import tariffs of up to 50% on electrical appliances
containing steel components, effective June 23, 2025. This includes products under
HS codes 84 and 85 such as washing machines, refrigerators, dryers, and dishwashers.
Tariffs are calculated based on the steel content value, with exceptions for the
UK and U.S.-melted steel products. Thailand faces rising duties, including universal
and reciprocal tariffs, with exemptions extended to August 2025. These measures 
aim to protect U.S. domestic industries and reduce reliance on imported steel and
aluminum.

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## Impact on Thailand’s Electrical Appliance Exports

The tariff hike affects five main product categories from Thailand: refrigerators,
freezers, large dryers, washing machines, and dishwashers. In 2024, Thailand’s exports
of these to the U.S. reached USD 153.4 million, about 4.1% of total electrical appliance
exports. Products like dishwashers, washing machines, and refrigerators are most
vulnerable, given their high export dependence on the U.S. market. SCB EIC projects
a contraction in Thailand’s electrical appliance exports by -1.9% in 2025 and -2.1%
in 2026 due to these tariffs and global economic slowdown.

## Urgent Business Adjustments and Strategic Diversification Needed

Thai electrical appliance manufacturers and supply chain operators must adjust urgently
to mitigate tariff impacts. This includes reassessing steel component costs, diversifying
exports to markets like ASEAN and the Middle East, and upgrading production technologies.
Investments in R&D to explore alternative materials such as recycled aluminum and
composite fibers are vital. Government support is critical to foster innovation,
promote smart appliances, and strengthen Thailand’s position as a leading manufacturing
hub in ASEAN, turning current challenges into growth opportunities.

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