The White House has announced additional changes to the US’ Section 232 tariff regime for steel, aluminum and copper imports, continuing the Trump administration’s efforts to strengthen domestic metals production and close perceived loopholes in existing trade measures.
The latest proclamation follows a series of Section 232 actions that have already raised US tariffs on imported steel and aluminum products and expanded coverage to a wider range of downstream products.
Tariffs to apply to full customs value
One of the most significant changes is that Section 232 duties will now apply to the full customs value of covered steel, aluminum and copper products, rather than only the value of the metal content within those products. The administration said the change is intended to simplify enforcement and prevent underreporting of metal values.
The White House argued that exporters had been exploiting valuation methods to reduce duty liabilities and that applying tariffs to the full value of imported goods would strengthen the effectiveness of the measures.
50 percent tariff remains for primary steel and aluminum products
Under the revised system, primary steel and aluminum products continue to face a 50 percent tariff when they are made entirely or almost entirely from the covered metals. Meanwhile, many derivative products containing substantial amounts of steel, aluminum or copper are subject to a 25 percent tariff on their full customs value.
The Proclamation encourages foreign companies to use more US steel and aluminum by allowing them to qualify for a 10 percent duty rate, if their capital equipment include at least 85 percent US melted and poured or smelted and cast steel or aluminum by weight. The tariff changes are temporary, lasting until December 31, 2027, to spur near–term investments that will rebuild the Nation’s industrial base.
Measures aimed at boosting US metal production
The White House stated that the revised tariff framework is designed to:
- strengthen domestic manufacturing,
- encourage investment in US steel, aluminum and copper production,
- reduce dependence on imports,
- support national security objectives.
According to the administration, recent Section 232 measures have contributed to higher domestic capacity utilization and encouraged new investment in US steelmaking and metal processing facilities.
