Mexican home appliance manufacturers brace for even more US tariffs

A bevy of household appliances made successful Mexico volition soon person to contend with U.S. President Donald Trump’s expanded alloy tariffs, according to a U.S. Commerce Department announcement posted earlier this week.

Imports of 8 merchandise lines — combined refrigerator-freezers, tiny and ample dryers, washing machines, dishwashers, thorax and upright freezers, cooking stoves, ranges and ovens, nutrient discarded disposals, and welded ligament racks — volition beryllium impacted arsenic of June 23, the announcement said.

Unless Economy Minister Marcelo Ebrard tin scope an statement with the U.S. soon, Mexican home appliance manufacturers volition beryllium looking astatine immoderate steep tariffs. (Ultima Hora SLP/on Facebook)

This quality comes arsenic Mexico’s Economy Minister Marcelo Ebrard is negotiating a woody to trim oregon destruct Trump’s 50% tariffs connected alloy imports up to a definite volume.

An manufacture root told Reuters that a apt result would see a quota arrangement, nether which a specified measurement from Mexico could participate work escaped oregon astatine a reduced complaint and immoderate imports supra that level would beryllium charged the afloat tariff, present astatine 50%.

The Mexican authorities has yet to respond to the caller Commerce Department notice.

This latest announcement is the 2nd clip that the Trump medication has expanded the database of “steel derivative products” taxable to the tariffs connected imported alloy and aluminum that were imposed astatine 25% successful March. 

“The tariff imposed … volition beryllium assessed connected these derivative products for the worth of the alloy contented successful each product,” a Federal Register posting said, according to Reuters.

The caller tariffs of 50% person generated wide interest for South Korean electronics giants Samsung Electronics and LG Electronics who merchantability a wide scope of location appliances successful the U.S. market, according to The Korea Herald. 

While some companies nutrient appliances successful the U.S., the bulk of their products sold successful the U.S. marketplace are produced extracurricular of the U.S., successful Mexico arsenic good arsenic astatine location successful South Korea. Much of the alloy utilized successful these appliances is besides sourced from extracurricular the U.S., the Herald reported.

Both Samsung and LG acceptable up accumulation facilities for location appliances successful the U.S. recently, chiefly successful effect to Trump’s tariff policies during his archetypal word successful bureau (2017-2021).

The caller tariffs look to beryllium atrocious quality for Mexico, the Herald reported, arsenic the 2 companies “are reportedly considering relocating immoderate of its accumulation successful Mexico to its U.S. plants.” 

“We are intimately monitoring the concern successful effect to the tariffs,” 1 manufacture authoritative told the Herald, speaking connected information of anonymity.

With reports from El Economista, Reforma, El País, The Korea Herald and Reuters