FLASH
15 July 2025
Tracking the U.S. Tariff Domino Effect: From Steel to Electrical Appliances
The United States has announced the imposition of import tariffs of up to 50% on electrical appliances containing steel components.
The United States has announced the imposition of import tariffs of up to 50% on electrical appliances containing steel components.
Since the U.S. began progressively implementing import tariff policies, Thailand has faced rising import duties, including a 10% universal tariff on products from all countries and reciprocal tariffs, exemption extended tariff deadline to Aug 1, 2025 . In addition, the United States has continued to issue specific product tariffs. Most recently, the U.S. Department of Commerce announced further specific tariffs expanding the scope to include derivative products containing steel components, notably electrical appliances classified under HS codes 84 and 85. This includes ten categories such as washing machines, refrigerators, dryers, and dishwashers. All countries are subject to tariffs of up to 50%, calculated based on the value of the steel content within the product. Exceptions include the United Kingdom, which is currently under a tariff reduction arrangement at 25%, and electrical appliances using steel melted and poured in the United States, which are exempted from tariffs (0%). These measures have been in effect since June 23, 2025. The tariff adjustments aim to protect domestic industries in the United States and reduce reliance on the importation of capital goods, including steel and aluminum.
The Latest Tariff Hike Will Affect Thai Exports Across Five Product Categories
The newly imposed tariff measures will impact Thailand’s exports of five electrical appliance products: refrigerators (HS CODE 8418.10), freezers (HS CODE 8418.40), large dryers (HS CODE 8451.29), large washing machines (HS CODE 8450.20), and dishwashers (HS CODE 8422.11). In 2024, Thailand’s exports of these products to the U.S. market totaled USD 153.4 million, accounting for approximately 4.1% of Thailand’s total electrical appliance exports.
Products anticipated to be significantly affected by the new tariffs include dishwashers, large washing machines, and refrigerators, given their high export dependency on the U.S. market, which stands at 56%, 28%, and 13% of total export value in each respective category.
SCB EIC estimates Thailand’s exports of electrical appliances will contract by -1.9% YoY in 2025, with a further contraction of -2.1% YoY expected in 2026 due to Trump’s tariffs.
The tariff increases on derivative products containing steel components are expected to impact the supply chain of Thailand’s electrical appliance industry, affecting both major manufacturers and component producers, who will face heightened uncertainty and will need to reassess their cost structures for the items subject to U.S. tariffs. Additionally, higher tariffs will result in increased prices for U.S. consumers, which will inevitably dampen order volumes for Thai products and weigh on export prospects. SCB EIC projects that the value of Thailand’s electrical appliance exports—including other items not subject to the current round of tariffs—will likely decline by
-1.9% YoY in 2025, with a continued contraction of -2.1% YoY in 2026, reflecting the global economic slowdown and the ongoing impact of U.S. tariff policies.
Businesses Must Accelerate Adjustments to Mitigate the Impact of Trump’s Tariff Measures
Electrical Appliance Supply Chain Operators Must Adjust Strategies to Address Risks from Recently Announced Specific Tariffs
Operators within the electrical appliance supply chain need to urgently adjust their strategies to address the risks arising from the recently announced specific tariffs. This includes assessing risks associated with high-risk product groups, reviewing the cost structure of steel-containing components used in production, and managing costs to offset the impact of higher steel-related tariffs. Additionally, operators must accelerate trade strategy adjustments by diversifying risk through expanding exports to other potential markets such as ASEAN, the Middle East, and Latin America to reduce dependence on the U.S. market. At the same time, the production supply chain must be upgraded through greater integration of technology in manufacturing processes and by creating added value in products, including the selection of materials and the incorporation of multifunctional features to better meet customer needs. Furthermore, operators should expedite research and development (R&D) to explore alternative materials to steel, such as recycled aluminum and composite fibers. Equally critical is government support, particularly in creating an ecosystem conducive to the growth of the industry. This includes budgetary support for R&D to foster new innovations and the promotion of investments in the smart electrical appliance sector, extending support to operators throughout the supply chain, enabling Thailand to advance as a key smart electrical appliance manufacturing hub within ASEAN.
The challenges currently faced by Thai electrical appliance manufacturers may not represent an end, but rather a pivotal turning point that could drive them to accelerate capacity development, paving the way for Thailand to emerge as a strong electrical appliance manufacturer in the future.
Since the U.S. began progressively implementing import tariff policies, Thailand has faced rising import duties, including a 10% universal tariff on products from all countries and reciprocal tariffs, exemption extended tariff deadline to Aug 1, 2025 . In addition, the United States has continued to issue specific product tariffs. Most recently, the U.S. Department of Commerce announced further specific tariffs expanding the scope to include derivative products containing steel components, notably electrical appliances classified under HS codes 84 and 85. This includes ten categories such as washing machines, refrigerators, dryers, and dishwashers. All countries are subject to tariffs of up to 50%, calculated based on the value of the steel content within the product. Exceptions include the United Kingdom, which is currently under a tariff reduction arrangement at 25%, and electrical appliances using steel melted and poured in the United States, which are exempted from tariffs (0%). These measures have been in effect since June 23, 2025. The tariff adjustments aim to protect domestic industries in the United States and reduce reliance on the importation of capital goods, including steel and aluminum.
The Latest Tariff Hike Will Affect Thai Exports Across Five Product Categories
The newly imposed tariff measures will impact Thailand’s exports of five electrical appliance products: refrigerators (HS CODE 8418.10), freezers (HS CODE 8418.40), large dryers (HS CODE 8451.29), large washing machines (HS CODE 8450.20), and dishwashers (HS CODE 8422.11). In 2024, Thailand’s exports of these products to the U.S. market totaled USD 153.4 million, accounting for approximately 4.1% of Thailand’s total electrical appliance exports.
Products anticipated to be significantly affected by the new tariffs include dishwashers, large washing machines, and refrigerators, given their high export dependency on the U.S. market, which stands at 56%, 28%, and 13% of total export value in each respective category.
SCB EIC estimates Thailand’s exports of electrical appliances will contract by -1.9% YoY in 2025, with a further contraction of -2.1% YoY expected in 2026 due to Trump’s tariffs.
The tariff increases on derivative products containing steel components are expected to impact the supply chain of Thailand’s electrical appliance industry, affecting both major manufacturers and component producers, who will face heightened uncertainty and will need to reassess their cost structures for the items subject to U.S. tariffs. Additionally, higher tariffs will result in increased prices for U.S. consumers, which will inevitably dampen order volumes for Thai products and weigh on export prospects. SCB EIC projects that the value of Thailand’s electrical appliance exports—including other items not subject to the current round of tariffs—will likely decline by
-1.9% YoY in 2025, with a continued contraction of -2.1% YoY in 2026, reflecting the global economic slowdown and the ongoing impact of U.S. tariff policies.
Businesses Must Accelerate Adjustments to Mitigate the Impact of Trump’s Tariff Measures
Electrical Appliance Supply Chain Operators Must Adjust Strategies to Address Risks from Recently Announced Specific Tariffs
Operators within the electrical appliance supply chain need to urgently adjust their strategies to address the risks arising from the recently announced specific tariffs. This includes assessing risks associated with high-risk product groups, reviewing the cost structure of steel-containing components used in production, and managing costs to offset the impact of higher steel-related tariffs. Additionally, operators must accelerate trade strategy adjustments by diversifying risk through expanding exports to other potential markets such as ASEAN, the Middle East, and Latin America to reduce dependence on the U.S. market. At the same time, the production supply chain must be upgraded through greater integration of technology in manufacturing processes and by creating added value in products, including the selection of materials and the incorporation of multifunctional features to better meet customer needs. Furthermore, operators should expedite research and development (R&D) to explore alternative materials to steel, such as recycled aluminum and composite fibers. Equally critical is government support, particularly in creating an ecosystem conducive to the growth of the industry. This includes budgetary support for R&D to foster new innovations and the promotion of investments in the smart electrical appliance sector, extending support to operators throughout the supply chain, enabling Thailand to advance as a key smart electrical appliance manufacturing hub within ASEAN.
The challenges currently faced by Thai electrical appliance manufacturers may not represent an end, but rather a pivotal turning point that could drive them to accelerate capacity development, paving the way for Thailand to emerge as a strong electrical appliance manufacturer in the future.