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The U.S. imposes a 25% tariff on steel, aluminum, and copper derivatives.
The U.S. White House said that President Trump signed an order related to metal tariffs on Thursday, imposing a 25% tariff on steel, aluminum, and copper derivative products. The metal derivatives tariff applies to items with at least 15% metal content.
The order said that under Section 232 of the 1962 Trade Act, a 50% tariff will be maintained on products made entirely of imported steel, aluminum, and copper. Derivative products made mainly of steel, aluminum, or copper will be subject to a uniform 25% tariff on their full value.
Certain metal-intensive industrial equipment and grid equipment will be subject to a 15% tariff rate before 2027. The goal is to speed up the large-scale industrial infrastructure buildup currently underway across the United States. Products manufactured overseas but made entirely using U.S.-produced steel, aluminum, and copper as inputs will be subject to the lower 10% tariff rate.
Items with steel, aluminum, or copper content of 15% or less will no longer be subject to this type of “Section 232” metal tariff.
At face value, the new metal tariff policy may reduce tariffs on some derivative products, because under the current policy, companies are required to calculate duties based on the steel and aluminum content in their products, with a maximum tariff of 50%.
However, some commentators argue that the new adjustment does not necessarily mean that trade protection has materially weakened. For companies that previously found it difficult to accurately account for metal content, the duty may end up being more certain and even increase, and the uniform application of the tariff could expand the scope of where tariffs apply.
The new rules mean that the Trump administration will impose a uniform 25% tariff on steel, aluminum, copper, and derivative products. The tariff coverage range will extend from raw materials to downstream finished products, and the policy target is clearly aimed at preventing evasion of the existing tariff framework.