President Trump Announces Changes To Section 232 Metals Tariffs For Most Trading Partners

On April 2, President Donald Trump issued a proclamation that will reshape the U.S. government’s Section 232 steel and aluminum tariff regime. According to the text of the proclamation, the new policy defines the way that these tariffs are assessed, “ensuring that they reflect the full value of imported steel, aluminum, and copper products — not an artificially low foreign price.”

The proclamation also establishes clear rules for calculating Section 232 metals tariffs. These rules, which went into effect Monday, April 6, state that:

• Articles made entirely, or almost entirely, of aluminum, steel, or copper will pay a flat 50 percent tariff on their full value. (The proclamation offered steel coils and aluminum sheet as an example of goods that are penalized at this rate.)
• Derivative articles substantially made of steel, aluminum, or copper will pay a flat tariff of 25 percent of their full value.
• Certain metal-intensive industrial equipment and electrical grid equipment will pay a 15 percent penalty through 2027 in order “to accelerate the massive industrial base buildout currently underway across the United States.”
• Products made abroad, but entirely with U.S. steel, aluminum, and copper, will be subject to a tariff rate of 10 percent.
• Products made of 15 percent or less steel, aluminum, or copper will no longer be subject to Section 232 metals tariffs.

This White House fact sheet has more information.

As Supply Chain Dive reported, President Trump noted steel and aluminum products from the United Kingdom will face a 25 percent tariff if those products are made almost entirely of steel, aluminum, or copper while derivative goods will face a 15 percent levy. The president also said the new rules did not alter or supersede agreements in place with trading partners such as the European Union, Japan, and South Korea.

In related news: Canadian government officials have threatened to raise the tariffs on U.S.-made steel and aluminum products if the two countries fail to reach a trade deal. Specifically, the government “will adjust its existing counter-tariffs on steel and aluminum products on July 21, to levels consistent with progress that has been made in the broader trading arrangement with the United States. Tariffs currently are set at 25 percent.” Read more at this link.