Trump restructures metals tariffs but keeps 50% rate on steel, aluminum and copper imports

The White House simplified the tariff framework for derivative goods with low metal content, but kept the 50% rate in place for a wide range of steel, aluminum and copper imports.

The Trump administration has announced a restructuring of its tariff regime for steel, aluminum and copper imports, keeping the 50% tariff in place for a broad range of metal products while introducing relief for derivative goods with limited metal content. The White House framed the move as a simplification of the existing policy and an effort to give businesses more clarity as they navigate the administration’s trade rules.

Under the new structure, products containing 15% or less steel, aluminum or copper will effectively be exempt from the Section 232 metals tariffs. Some other derivative goods deemed to be “substantially made” of one of those metals will instead face a reduced 25% tariff, while certain metal-intensive industrial equipment and electrical grid equipment will be taxed at 15% through 2027.

The White House also said that products manufactured abroad but made entirely with US-produced metals will face a lower 10% tariff. At the same time, the administration will maintain the 50% rate on a large number of derivative products, including items such as imported steel pipe, and that levy will apply to the full value of the product, not just to its metal content.

New framework aims to simplify compliance and reduce avoidance

The shift follows months of lobbying from companies that argued they had been unfairly burdened by the earlier structure, which extended metals tariffs to products containing only small amounts of steel, aluminum or copper, even when those materials represented only a minor share of the product’s overall weight and value. The revised framework is intended to make compliance easier and, according to the administration, reduce opportunities for underreporting and tariff avoidance.

Reuters reported that, under the revised system, tariffs on many derivative products will now be calculated using the sale price paid by the US customer rather than the declared import value, a change intended to tighten enforcement against undervaluation practices. That means some imported goods could still face a higher effective tariff burden even if their nominal rate is lowered from 50% to 25% in certain cases.

Officials also pointed to consumer products with only minimal metal content as examples of goods that may benefit from the relief. Those examples include dental floss with a small metal cutting edge and washing machines.

Metals tariffs remain central to Trump’s trade agenda

The restructuring comes one year after Trump launched the core of his second-term trade agenda, which relied on broad tariffs to encourage more domestic manufacturing, expand US access to foreign markets and rebalance global trade flows. While the US Supreme Court earlier this year struck down some of Trump’s country-by-country tariffs imposed under emergency powers, the administration has continued rebuilding that trade wall using other legal authorities, including Section 232 of the Trade Expansion Act.

In that context, the revised metals tariffs are designed to preserve protection for US steel, aluminum and copper producers while making the system more workable for importers and manufacturers. Jon Toomey, president of the Coalition for a Prosperous America, said the changes would help ensure the tariffs function as intended to support domestic production and American workers.

Markets reacted cautiously. Comex copper initially rose as much as 1.4% after the announcement before reversing course and trading about 0.5% lower later in the US session, reflecting uncertainty over the measure’s real impact on costs, trade flows and manufacturing.

The revised framework confirms that, despite technical adjustments and partial exemptions, Trump’s trade policy remains firmly committed to maintaining a high tariff wall for many metal imports. With the US midterm elections approaching in November, the effect of those tariffs on prices, manufacturing and the broader economy is likely to remain a central issue in the political and business debate.