U.S. Unleashes New Wave of Tariffs: Hundreds More Steel & Aluminum Products Caught in the Net

In a significant expansion of its ongoing trade policy, the U.S. Commerce Department has announced that an additional 407 product categories will now be subject to steel and aluminum tariffs. This move broadens the scope of duties that have reshaped global trade dynamics, impacting a wide array of goods, particularly those considered 'downstream' products.

These newly added categories, which include items such as various types of steel nails, cables, wires, and aluminum bumper stampings, will now face duties of 25 percent for steel products and 10 percent for aluminum products.

The decision underscores the administration's continued commitment to using tariffs as a tool to bolster domestic industries and address perceived national security concerns.

While expanding the list of dutiable goods, the Commerce Department also revealed a wave of new product exclusions. A total of 144 fresh exclusions have been granted for specific items, bringing the cumulative number of approved exclusions to 6,863.

These exclusions are typically granted to U.S. companies that can demonstrate an inability to procure the necessary products from domestic suppliers, or when such products are deemed vital for national security purposes.

The current steel and aluminum tariffs were initially imposed by the Trump administration in March 2018, under Section 232 of a 1962 trade law.

This rarely used provision allows the president to levy tariffs on imports if they are deemed a threat to national security. Many key U.S. allies, including the European Union, Canada, and Mexico, were initially exempted from these tariffs but later faced their imposition, leading to retaliatory measures.

A notable shift occurred in May, when the tariffs on steel and aluminum from Canada and Mexico were lifted.

This decision came as part of an agreement where both neighboring nations consented to eliminate their own retaliatory tariffs on American goods. This development marked a de-escalation of trade tensions with two of the U.S.'s largest trading partners.

Since the implementation of these tariffs, official data indicates a significant shift in trade patterns.

U.S. steel imports, for instance, have seen a substantial reduction of 28 percent year-on-year during the first four months of the current period. Concurrently, the domestic steel industry has witnessed a boost, with U.S. steel production capacity utilization now exceeding 80 percent – a level often cited by the administration as a benchmark for a healthy and robust domestic industry.