US President Donald Trump on April 2 adjusted tariff rates for certain steel and aluminum products and addressed vague language that has allowed importers to undercut domestic metals producers.
Trump maintained the overall 50% tariffs on steel, aluminum and copper imports under Section 232 of the Trade Act of 1974.
The Trump administration has used tariffs to attempt to boost US manufacturing, particularly steel and aluminum production. Trump's proclamation closed a loophole that allowed importers to only pay duties based on the value of the raw metal for steel and aluminum, rather than the far higher value of the finished product.
The proclamation modifies the metals tariffs, so they apply "to the full customs value of aluminum, steel and copper articles and their derivatives, regardless of metal content."
The revised metals tariffs set a 50% rate on the full value for articles made entirely or almost entirely of aluminum, steel or copper, such as steel coils and aluminum sheet.
Derivative articles made of steel, aluminum or copper will pay 25% of their full value. This includes hydraulic power engines, motors and cylinders, and wind turbine hubs.
Products made of 15% or less of steel, aluminum or copper will no longer be subject to the Section 232 tariffs.
Additionally, certain metal-intensive industrial equipment and electrical grid equipment will pay 15% through 2027 as part of the Trump administration's actions to boost domestic manufacturing, a White House fact sheet said.
Products made abroad but with US metals will face a lower tariff, and a separate 25% tariff rate will apply to UK products.
The revised tariffs take effect April 6.
Industry groups cheer
Industry groups applauded the Trump administration's actions.
"Century Aluminum strongly supports President Trump's executive order, which defends American manufacturing and holds foreign companies accountable for unfair practices by closing loopholes that importers had previously tried to use to cheat the system," Jesse Gary, CEO of Century Aluminum Co., said in a statement.
The American Iron and Steel Institute, a trade group, commended Trump for ensuring that all steel mill products, including steel pipe and tube, reap the full benefits of the 50% tariffs on steel imports, Kevin Dempsey, AISI president and CEO, said in a statement.
"We also welcome the steps being taken today to simplify the process for applying the steel tariffs to critical steel derivative products," Dempsey said.
Philip Bell, CEO of Steel Manufacturers Association, another steel trade group, said that the new changes ensure that the tariffs continue to support the revitalization of the US steel industry without undermining broader economic goals.
"Updating the methodology to reflect the full value of steel-containing products is a critical fix," Bell said. "It will help restore fairness, encourage domestic production, and ensure imports are properly valued."
The revised tariffs come one year to the day of Trump announcing his country-specific, or "Liberation Day," tariffs on dozens of US trading partners, which the Supreme Court struck down on Feb. 20.
