Whirlpool, a Benton Harbor-based appliance manufacturer, views the recently implemented tariffs as a long-term positive for its U.S. operations. While acknowledging short-term headwinds like higher component costs and increased Asian imports in anticipation of the tariffs, the company's CEO, Marc Bitzer, expects a significant boost once the tariffs take full effect in July. This is due to the belief that the tariffs will eliminate the unfair advantage Asian competitors previously enjoyed.
Whirlpool reported a 19.4% decline in first-quarter sales, largely attributed to a challenging macro environment and decreased consumer confidence. Despite this, the company projects full-year sales growth of 3% for 2025. They are implementing price increases and cost-cutting measures to offset higher costs resulting from tariffs.
Whirlpool highlights its substantial domestic production as a key advantage. The company manufactures 80% of its domestic sales within the U.S., significantly more than its competitors. This strong domestic footprint positions Whirlpool to benefit significantly from the new tariff policy, creating a more stable competitive landscape in the latter half of the year.
Tariffs could boost business for Benton Harbor-based appliance maker Whirlpool Corp.
Once the U.S. market works through inventory that Asian-based household appliance manufacturers built up by 30% in recent months in anticipation of new tariffs, Whirlpool expects a “significant tailwind,” Chairman and CEO Marc Bitzer told investors.
“The newly announced tariffs are critical in closing a pre-existing loophole that gave our Asian competitors an unfair advantage over U.S. domestic production. The tariffs will finally help create a level playing field for Whirlpool,” Bitzer said in a Thursday conference call to discuss quarterly results.
For now, tariffs on imported parts that Whirlpool uses “represent, in the short term, a manageable headwind, largely in the form of higher component costs and the market preloading by Asian competitors,” Bitzer said.
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“Asian appliance producers significantly increased imports into the U.S. ahead of the tariffs in the first quarter and fourth quarter, essentially loading the U.S. industry,” Bitzer said. “This market disruption will likely continue into Q2 as competitors attempt to sell through their inventory. However, once the already announced tariffs fully kick in, this will turn into a significant tailwind for Whirlpool as a domestic producer.
“No matter how you look at it, Whirlpool with its 10 large U.S. factories is a net winner of a new tariff policy. With our strong domestic footprint, we produce 80% of our domestic sales in the U.S. No competitor is even close to that level of domestic production.”
Once tariffs on Asian imports take full effect in July, Whirlpool expects “a more stable competitive landscape in the second half, an environment in which we can leverage our U.S. domestic production to its fullest extent,” he said.
For now, Whirlpool expects “similar market dynamics in the second quarter as we experienced in the first quarter with Asian competitors preloading ahead of tariffs and working through elevated inventories,” Bitzer said.
Retaliatory tariffs by Asian competitors and the higher costs for imported components “have begun to negatively impact our business,” he said, reiterating that “more importantly, the current administration’s trade policies will structurally benefit domestic producers.”
“We expect the new reciprocal tariffs to level the playing field for U.S. appliance manufacturers and additional U.S. trade policy actions will close loopholes and eliminate disadvantages we currently face,” Bitzer said. “No matter how you look at the new tariff landscape, Whirlpool with its strong U.S. production base is a net winner more than anyone else in our industry.”
Whirlpool has implemented price increases to offset higher costs for Chinese-made component and “structurally drove costs out of our business,” Bitzer said. The company also plans to do more to cut operating costs, he said.
On Thursday, Whirlpool (NYSE: WHR) reported $3.62 billion in sales for the first quarter, a 19.4% decline from the first three months of 2024.
North American sales of $2.41 billion were essentially flat “as we experienced a continued challenging macro environment in the U.S.,” CFO James Peters said. “Consumer confidence declined sharply throughout the first quarter as a result of economic uncertainty from anticipated tariffs.”
The corporation recorded $79 million in net income, or $1.28 per diluted share, versus a $259 million net loss, or $4.72 per diluted share, a year earlier.
Whirlpool projects full-year sales of $15.8 billion for all of 2025, 3% growth organically over 2024 after divestitures are taken into account, “driven by our strong pipeline of new products,” Peters said.
“We are confident our business is well positioned for continued growth and margin expansion in the second half, supported by our exciting new products,” Peters said.
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