The administration of Donald Trump is reportedly preparing to introduce a tiered tariff system on steel and aluminum products, aiming to simplify compliance for American businesses.
According to reports, the plan would maintain a 50% tariff on many steel and aluminum goods, while applying a 25% rate to others, and even lower rates for select products.
Importantly, products containing less than 15% steel or aluminum could be exempt from tariffs entirely, addressing concerns raised by companies over the complexity of current rules.
U.S. businesses have argued that broad-based tariffs on derivative products make it difficult to calculate duties, particularly for goods with minimal metal content, potentially impacting sales and profitability.
The The Wall Street Journal also reported that a 25% tariff could be applied to derivative products, while higher rates would remain for items made predominantly of steel and aluminum.
The policy review comes amid ongoing trade negotiations with the European Union. Recently, the European Parliament approved a conditional EU–U.S. trade agreement, requiring the U.S. to reduce tariffs on certain EU goods to no more than 15%.
Failure to comply could result in the EU withdrawing tariff preferences on U.S. steel and aluminum exports within six months.
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