Trump Overhauls Steel, Aluminium and Copper Tariffs

US President Donald Trump has revised his administration's national security tariffs on imports of steel, aluminium and copper, adjusting the rates applied to derivative products made from those metals in a move designed to reduce complexity, close valuation loopholes and prevent importers from under-reporting the worth of their shipments, news agency Reuters has reported.

Under a proclamation signed by Trump on Thursday, US will keep a 50 per cent tariff on commodity imports of steel, aluminium and copper under Section 232 of the Trade Act of 1974, but will now apply that rate to the prices paid by American customers rather than declared import values. A senior administration official said some importers had been artificially deflating the stated value of their goods to reduce their tariff liability. 

It remained unclear at the time of the announcement precisely how sales prices and the resulting duties would be calculated.

Several further changes were set out by the administration. Derivative products in which steel, aluminium or copper account for less than 15 per cent of total weight by content will no longer attract the 50 per cent Section 232 duty. 

The official said this would remove tariffs from goods with only token metal content, citing a perfume bottle fitted with an aluminium cap or a dental floss dispenser with a small steel cutting blade as examples.

Certain metal-intensive industrial and electrical grid equipment will see their tariff rate cut from 50 per cent to 15 per cent through to 2027, a concession the White House said was intended to speed up industrial expansion. Steelmakers had lobbied for the reduction specifically in relation to steelmaking machinery manufactured in Germany and Italy.

Derivative products with metal content exceeding 15 per cent by weight will face a flat 25 per cent tariff applied to the full value of the import rather than just the metal portion. Under this arrangement, a washing machine or gas cooker constructed largely from steel would attract a uniform 25 per cent duty.

Goods manufactured abroad but made entirely from American steel, aluminium or copper will be subject to a lower tariff of 10 per cent.

"So it's easier, it's simpler, it's more straightforward. For many products, it'll be lower. For some products, it'll be a little higher, but mostly, it's fine," the official said, adding that the administration had consulted industry on the changes and received a broadly positive response.

The official said the overall economic effect of the revised regime would not differ materially from the previous one, though applying the 50 per cent commodity rate to full sales values could bring in somewhat higher tariff receipts. The changes were described as an attempt to untangle a tariff structure that had caused significant confusion for importers trying to calculate duties across thousands of derivative products, ranging from tractor components to stainless steel sinks and railway equipment.