Between tariff turbulence and a flood of cheap imports, Whirlpool braces for margin recovery with stronger US manufacturing, fresh investments, and hopes pinned on a housing rebound.
Whirlpool Corporation reported a margin decline in the third quarter of 2025 as competitors imported large volumes of lower-cost appliances from Asia ahead of new tariffs. The surge in pre-tariff imports created an oversupply in the US market, affecting pricing and profitability, CEO Marc Bitzer said during the company’s Q3 earnings call.
According to a report by Manufacturing Dive, the consumer appliance maker absorbed about $100 million in tariff-related costs during the quarter, mostly linked to imported components.
Whirlpool expects total tariff expenses of around $225 million for the year, provided duties remain at current levels. Despite these pressures, the company’s net sales rose 1% to approximately $4 billion, supported by strong demand for KitchenAid small appliances and gains in major appliance market share.
Whirlpool executives said competitors’ early imports forced the company to run more promotions to remain competitive, which dented margins by 250 basis points. Gross margin fell by $49 million compared with last year, according to Chief Financial and Administrative Officer Jim Peters. Bitzer described the current situation as “an inventory overhang” that he expects will clear over time as imports slow.
Data supports this trend. Appliance imports from Asia were near record highs in the first half of the year, but container demand and freight rates have since dropped. At the Port of Los Angeles, volumes fell 7.5% year-on-year in September.
As tariffs on imported appliances and materials such as steel and aluminium take hold, Whirlpool believes its largely domestic production base gives it a relative advantage. About 80% of its US-sold products are built domestically, and 96% of its steel is sourced within the country.
The company recently announced a $300 million investment in its Ohio, US laundry plants to strengthen its local manufacturing footprint. Bitzer said Whirlpool expects long-term benefits as tariffs raise competitors’ costs and the US housing market gradually recovers in the coming years.
