Trump Reinstates Steel and Aluminum Tariffs to Counter Import Surge
President Donald Trump has signed new proclamations restoring and expanding the Section 232 tariffs on steel and aluminum imports, initially implemented in 2018. The revised measures reinstate a 25% tariff on steel imports and increase the aluminum tariff from 10% to 25%, removing all country-specific exemptions.
The original tariffs led to over $15 billion in investments in the U.S. steel industry, with major producers expanding operations. However, subsequent policy changes, including product exclusions and exemptions, resulted in increased imports, undermining domestic production. Trump’s latest measures aim to counteract tariff circumvention through transshipment via Canada and Mexico, ensuring all imports are subject to tariffs based on North American "melt and pour" and "smelt and cast" standards.
Key trading partners, including China, Russia, and South Korea, have been accused of exploiting loopholes to flood the U.S. market with steel and aluminum products. The revised tariffs also target derivative product evasion, addressing methods such as lightly processing materials in tariff-exempt countries before re-exporting them to the U.S. Additionally, U.S. Customs and Border Protection will intensify enforcement efforts to prevent misclassification and tariff evasion.
The administration expects these measures to bolster domestic steel and aluminum production, increase utilization rates, and support American manufacturers against subsidized foreign competition.
