US Plans to Adjust Tariffs on Steel and Aluminum Derivatives, Introducing Graduated Rate Cuts and Simplified Tax Collection
 
According to US media reports, the Trump administration is planning to optimize and adjust the existing steel and aluminum tariff regime, a move expected to lower tariffs on a wide range of consumer goods and ease burdens on downstream industries and consumers.
 
The tariff adjustment will implement differentiated tax rates based on product categories, with the specific plan as follows: Bulk commodity-grade basic steel and aluminum products will maintain a 50% tariff rate, and the levy will likely apply to the full product value—especially for industrial goods such as steel beams, pipes, and chains that are primarily made of steel or aluminum. Compared with the current practice of taxing only metal content, the tax burden may increase.
 
For finished products manufactured with steel and aluminum, the tariff will be reduced from 50% to 25%, levied on the total product value rather than just the metal content. Downstream sectors including automotive manufacturing, home appliances, and construction materials are expected to benefit.
 
For consumer goods with low steel and aluminum content, such as certain kitchen accessories, tariffs may be cut to around 15% to ease inflationary pressure and reduce consumer spending burdens.
 
One key goal of this overhaul is to simplify tariff collection. The current model, which taxes only metal content, involves complicated declaration and calculation processes, forcing downstream manufacturers to spend extra labor on compliance and driving up costs, drawing widespread industry complaints. The new scheme adopts fixed full-value tax rates by product category, making enforcement simpler and more efficient.
 
As of now, the tariff adjustment has not been officially announced or implemented. Sources suggest the new policy could be unveiled as early as this week or in the near future. The White House has stated that any policy change must be announced personally by the president.
 
Previously, starting June 4, 2025, the US imposed a 50% tariff on imported steel and aluminum from nearly all countries under Section 232 of the Trade Act based on national security grounds, aiming to curb unfair competition from global overcapacity and protect domestic steel and aluminum industries. In August 2025, the US Department of Commerce expanded the tariff list to include 407 steel and aluminum derivatives, covering wind turbine parts, heavy machinery (cranes, bulldozers), furniture, compressors, rail vehicles, and more. Tariffs of 50% applied only to the metal content of these products, not their full value, further extending tariff coverage to hundreds of billions of dollars in imports.
 
Notably, the UK is an exception, with its steel and aluminum tariffs remaining at 25%. The US may later switch to a quota system or other arrangements under the US-UK Economic Prosperity Partnership (EPP).
 
High existing steel and aluminum tariffs have continuously raised production costs for downstream industries including automotive, construction, home appliances, and packaging, driving up consumer prices. Insiders believe the graded tariff reduction, especially for consumer goods with low metal content, also reflects political considerations by Trump ahead of the US midterm elections.