Aug 21, 2025
US hikes steel, aluminum tariffs on over 400 goods
Reuters, WASHINGTON
The US Department of Commerce on Tuesday said that it would hike steel
and aluminum tariffs on more than 400 products including wind turbines,
mobile cranes, appliances, bulldozers and other heavy equipment, along
with railcars, motorcycles, marine engines,
furniture and hundreds of other products.
The department said 407 product categories are being added to the list
of “derivative” steel and aluminum products covered by sectoral tariffs,
with a 50 percent tariff on any steel and aluminum content of these
products plus the country rate on the non-steel
and non-aluminum content.
Evercore ISI said that the move covers more than 400 product codes
representing more than US$200 billion in imports last year and estimated
it would raise the overall effective tariff rate by about 1 percentage
point.
Steel rolls from China are pictured after being unloaded at the Port of Valparaiso in Chile on July 10.
Photo: Reuters
The department is also adding imported parts for automotive exhaust
systems and electrical steel needed for electric vehicles (EVs) to the
new tariffs as well as components for buses, air-conditioners as well as
appliances including refrigerators, freezers
and dryers.
A group of foreign automakers had urged the department not to add the
parts, saying the US does not have the domestic capacity to handle
demand.
Tesla Inc unsuccessfully asked the department to reject a request to add
steel products used in EV motors and wind turbines, saying there was no
available US capacity to produce steel for use in the drive unit of
EVs.
The new tariffs take effect immediately, and also cover compressors,
pumps, and the metal in imported cosmetics and other personal care
packaging such as aerosol cans.
“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,” US Under
Secretary of Commerce for Industry and Security Jeffrey
Kessler said.
Steelmakers including Cleveland Cliffs Inc, Nucor Corp and others had
petitioned the administration of US President Donald Trump to expand the
tariffs to include additional steel and aluminum auto parts.