COLUMBUS, Ohio (WCMH) -- U.S. Sen. Bernie Moreno is calling for the Commerce Department to extend tariffs to cover all imported steel-containing appliances, pleasing Ohio manufacturers but concerning economists.
In a May 8 letter, Moreno, an Ohio Republican in his first term, said he was following up on a previous conversation with Commerce leadership about extending tariffs to foreign appliances that use steel. Moreno said taking action against imported appliances would help U.S. industries, including companies in Ohio like Whirlpool. Whirlpool spokespeople told NBC4 they were in favor of the tariff proposals; however, economists warn increased tariffs on appliances could drive up costs for Ohioans.
Moreno told NBC4’s Natalie Fahmy on May 1 that he stands by President Donald Trump’s economic policies, which he believes have been effective in increasing investments in the U.S. Moreno said trade data from 2018 shows American imports of appliances from four Asian countries have doubled since 232 tariffs were first introduced. See previous coverage of Fahmy's conversation with Moreno in the video player above.
“Clearly, these imports are rising to evade the section 232 tariffs and undercut American appliance manufacturers and their workers who use domestic melted and poured steel and U.S. supply chains to manufacture products,” Moreno wrote.
Section 232 refers to part of the Trade Expansion Act of 1962 that grants the president the authority to enact tariffs and other controls on imports if the Secretary of Commerce determines there is a national security threat. Trump invoked section 232 tariffs in 2018 and revived them on Feb. 11 with his steel and aluminum tariffs.
Moreno specifically said appliance manufacturer Whirlpool would benefit from his proposal. The company is headquartered in Michigan but has a major presence in Ohio, which is home to five of its nine manufacturing plants. Whirlpool estimates it employs more than 8,000 Ohioans and more than 14,000 people across the U.S.
Report: Ohio ranks among worst states in the U.S., again"As the only major U.S.-based manufacturer of kitchen and laundry appliances, we appreciate Senator Moreno's efforts to level the playing field for American manufacturers," Whirlpool Corporation said in a statement to NBC4.
Whirlpool said about 80% of its products are made in the U.S., and the company sources about 96% of its steel domestically. Although the tariffs could benefit Whirlpool, economists estimate they could also spike prices for Ohioans. The Federal Reserve predicts household appliances will see at least a 1% price increase under Trump’s current tariffs, and Yale's Budget Lab predicts even higher increases.
According to Yale’s Budget Lab, the 2025 tariffs imply a 1.7% increase in consumer prices in the short term. Nationwide Senior Economist Ben Ayers predicts a rise in costs over the summer as tariff impacts settle in.
“Even with the sharp reduction in the tariff rate on Chinese imports, a jump in consumer goods costs is still expected this summer as importers pass on at least a portion of tariffs into prices on the shelves,” Ayers said.
The issue predates either of Trump's terms. Former President George W. Bush enacted steel tariffs, which led to similar complications. According to the Peterson Institute for International Economics, Bush's tariffs cost more than $400,000 annually per steel industry job saved, leading to layoffs.
Ex-Congressman Ryan mulls run for Ohio governorAccording to a report published by Ohio State University professor of economic development Edward Hill, Ohio had the largest exposure of any state to retaliatory tariffs imposed by Canada during the 2018 trade skirmish in Trump’s first term. In collaboration with OSU senior research associate Fran Stewart, Hill found steel and aluminum tariffs led to layoffs, and all but one of the steel plant expansions completed in Trump's first term in Ohio were underway before tariffs were announced.
The Ohio Manufacturing Extension Program surveyed nearly 500 Ohio companies about the impact of tariffs, and 14 times as many respondents said tariffs "very negatively" affected them as compared to "very positively."
A study by the Federal Reserve examining how Trump’s 2018 tariffs affected American manufacturing found the tariffs generally led to higher prices and layoffs in manufacturing companies. Whirlpool, however, remains optimistic.
"U.S. manufacturers, workers and communities have been negatively impacted by foreign companies that exploit policy loopholes to avoid tariffs," Whirlpool Corporation said in a statement. "These loopholes allow foreign companies to use cheaper, often subsidized, Chinese steel and components without being subject to the same tariffs as U.S. appliance manufacturers."
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