Trump is expanding steel tariffs to include more imported household appliances starting June 23. This change was announced on Thursday and affects “steel derivative products,” like dishwashers, washing machines, and refrigerators. Currently, tariffs are set at 50% for most countries. They began at 25% in March but were later doubled. This is the second time the list of affected products has grown, which originally included nearly 300 items like horseshoes and bulldozer blades. The latest update adds eight new product categories, including combined refrigerator-freezers, dryers, dishwashers, freezers, ovens, stoves, garbage disposals, and welded wire racks. According to the Federal Register, the tariffs will be calculated based on the steel content of each product. This move tightens import restrictions, extending rules that initially targeted raw steel to everyday items made from it. The new tariffs aim to strengthen domestic manufacturing by making certain imports more expensive. The previous 25% duty was raised to 50%, and now, with eight more categories included, the reach is broader, not narrower. The new duties will be based on the steel content rather than the total product price. This means products made with more steel parts will face higher penalties, making it harder for those selling mixed-material items. For instance, a refrigerator made with stainless steel will have different tariff rates than one with minimal metal. Traders watching steel and appliances could see more price swings during the day. Immediate effects may influence futures connected to manufacturers and base metal supplies, as pricing pressure shifts further along the supply chain. Investors focused on technicals may notice more unpredictable movements, especially during market openings and closings. Options pricing could reflect increased risk, with volatility for metal-heavy appliance companies rising in response to news-driven changes. We expect more short-term disruptions instead of a steady increase. Allocations in derivatives linked to manufacturing sectors with heavy imported materials should be adjusted based on regional exposure. Markets often react unevenly to new developments like this, and as participants update earnings forecasts, relevant equity positions may show unusual correlations. With the specific date and product list out, there’s time to rethink risk assumptions. Flows that rely on cross-border cost savings might decline or change direction, weakening previous trends. Weekly trading volume could shift towards safer investments or speculative positions regarding supply issues. We should watch for secondary impacts: will pricing pressures affect energy use in appliance manufacturing, or lead to substitutions in materials? Pairs that usually follow behavioral trends may not correct quickly despite the new challenges. It’s important to stay alert for shrinking margins in Q3 and Q4 forecasts, especially for buyers unprepared for these tariff changes. Shipping costs to the U.S. may also change as suppliers consider their impact, bringing freight-sensitive assets into play. This signals that the rules for production sourcing are changing. The challenge is to stay flexible, responsive, and precise when choosing strike prices and expiration dates for future plans. There’s no room for trades based on outdated assumptions.

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