Tariff-Driven Trade Realignment and Domestic Manufacturing Advantage
Newell has invested nearly $2 billion in North American production facilities since 2017, creating significant untapped capacity.
Over half of U.S. sales are from highly automated, tariff-free manufacturing plants in the U.S. and Mexico.
The company has secured incremental business in 13 of 19 categories with domestic manufacturing capability, leveraging tariff advantages.
Over 30 customers across nearly every domestic channel have benefited from tariff-relative sourcing advantages or tariff-free inventory.
Some tariff-related wins are large and long-term, with potential impacts extending into 2026.
The company expects to offset all permanent tariff impacts through cost reductions and pricing actions, with only a small, non-recurring impact remaining.
Tariff and Trade Environment Impact and Mitigation Strategies
The company expects around $10 million in tariff-related costs for the full year, with most impact in Q4, due to inventory pre-exposure and sourcing adjustments.
Central has reduced China purchases by nearly 50% in Q3, shifting sourcing to mitigate tariff impacts, and is working on pricing strategies to offset cost increases.
Management highlighted ongoing efforts to work with customers and suppliers to limit margin erosion, with a cautious outlook on future tariff developments.
Impact of Tariff Delays and Preloading on Asian Imports
Asian appliance imports increased over 20% in the first half of 2025 due to delays in tariff implementation, creating significant short-term disruption.
Estimated 60 to 90 days of excess Asian inventory in the system as of May, with a gradual flow-through expected as tariffs take full effect.
Tariff delays have extended the preloading period, impacting promotional intensity and margins into Q3 and Q4.
Management believes the full impact of tariffs will benefit Whirlpool long-term, as the company is structurally positioned to capitalize on trade policy shifts.
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