Commerce Dept. Expands Tariffs On Steel, Aluminum Products
The Department of Commerce announced on August 19 the addition of 407 product categories to the list of “derivative” steel and aluminum products covered by Section 232 sectoral tariffs. As a result, the steel and aluminum content of these products will be subject to a duty rate of 50 percent. The administration said this move was the result of orders from months ago to plug gaps and workarounds of the previously announced steel and aluminum tariffs and should not be a surprise. Administration officials said the product inclusions came at the request of domestic industries.
A complete list of the added products was posted to the Federal Register. Market analysts say the impact of this particular move will be widespread. Equipment costs will rise for ports, barge companies and any other business that uses imported steel or aluminum parts. The United States imports about 70 percent of the tin-plate steel used in canned goods.
In a press release, the Commerce Department said, “Today’s action covers wind turbines and their parts and components, mobile cranes, bulldozers and other heavy equipment, railcars, furniture, compressors and pumps, and hundreds of other products.”
Under Secretary of Commerce for Industry and Security Jeffrey Kessler said, “Today’s action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention—supporting the continued revitalization of the American steel and aluminum industries.”
This is the latest in a series of steps the Trump Administration says it is taking to strengthen America’s steel and aluminum industry. In February, President Trump issued Proclamations 10895 and 10986, which eliminated numerous carve-outs from the Section 232 steel and aluminum tariffs and cracked down on “tariff misclassification and duty evasion schemes.”
These proclamations also directed the Department of Commerce, within 90 days, to establish a process for adding steel and aluminum derivative products to the Section 232 tariffs. Commerce did so in May. In June, Trump issued Proclamation 10947, which increased the tariff rate for steel and aluminum from 25 percent to 50 percent.
Under the Department of Commerce’s steel and aluminum product inclusion process, there are three annual windows for the public to submit product inclusion requests. The next window will open in September and will be announced in the Federal Register.
