Trump Retains 50% Tariffs on Steel, Aluminium and Copper, Revises Duty Rules

U.S. President Donald Trump has retained a 50% tariff on steel, aluminium and copper imports under Section 232 of the Trade Act of 1974, while altering how the duty is calculated. 

The tariff will now be applied to the price paid by U.S. buyers rather than the declared import value.  

Reports indicated that earlier declarations were, in some cases, understated, reducing payable duties. The revised approach is intended to address under-reporting, although the exact pricing benchmark remains unspecified. 

Changes to Derivative Product Duties 

The administration has introduced new thresholds for derivative products. Items containing less than 15% of steel, aluminium or copper by weight will no longer attract tariffs. This removes duties on goods where metal is only a minor component. 

For products exceeding the 15% threshold, a 25% tariff will apply on the full import value. This replaces earlier rules that required assessing only the metal portion, which had created calculation and reporting complexities. 

Lower Rates for Selected Industrial Categories 

Certain metal-intensive equipment linked to manufacturing and power infrastructure will see tariffs reduced to 15% from 50% until 2027.  

The adjustment is for facilitating industrial capacity expansion, including machinery used in steel production and grid-related equipment. 

In addition, products manufactured overseas using entirely U.S.-origin metals will be subject to a lower 10% tariff. This creates a separate category within the revised structure. 

Administrative Simplification and Scope 

Reports also suggest that the previous tariff framework had become difficult to administer, particularly for goods with mixed material composition such as machinery parts, appliances, and construction equipment. 

The revised structure introduces fixed thresholds and rates, replacing product-by-product metal valuation. The changes will take effect shortly after midnight on Monday, according to the proclamation. 

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Conclusion 

The revised tariff framework maintains the headline 50% duty while modifying its application and introducing tiered rates for derivative goods, with adjustments aimed at simplifying compliance and addressing valuation practices. 

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