Trump Eases Tariffs on Steel, Aluminum, and Copper Derivatives

U.S. President Donald Trump announced revisions to tariffs on imported steel, aluminum, and copper, lowering duties on a wide range of derivative products while maintaining strict levies on core metal imports.

The changes, unveiled Thursday, adjust measures imposed under Section 232 of the Trade Expansion Act of 1974, a provision tied to national security concerns. While the United States will continue to enforce a 50% tariff on primary imports of these metals, the administration is introducing a more nuanced framework for downstream goods.

Under the revised system, products containing less than 15% metal by weight will be exempt from the 50% tariff altogether. This includes items such as perfume bottles, small tools, and consumer goods where metal components are minimal.

For products exceeding the 15% threshold, tariffs will be reduced to 25%, but applied to the total value of the imported item rather than just its metal content. This category includes a wide range of goods, from household appliances to industrial equipment primarily made of steel.

Officials say the overhaul is designed to address longstanding complaints from importers regarding the complexity of the previous system, which required precise calculations of the proportion of metals in thousands of different products.

A senior administration official noted that some importers had exploited the complexity by undervaluing shipments to reduce tariff obligations. The revised framework, they argued, makes the system “simpler, clearer, and more enforceable.”

Despite the structural changes, officials indicated that the overall economic impact is expected to be modest. However, applying the full 50% tariff to the total value of primary metal imports could boost government revenue.

The policy adjustment reflects an attempt to strike a balance between protecting domestic industries and reducing friction for businesses reliant on imported components.

Initial feedback from industry stakeholders has been cautiously positive, particularly regarding the simplification of compliance procedures. However, some analysts warn that uncertainties remain, especially regarding how to determine the final value on which customs duties will be imposed.

As global trade tensions and supply chain challenges persist, the revised tariff regime underscores Washington’s ongoing effort to recalibrate its trade policy without fully retreating from protectionist measures.