The U.S. Department of Commerce announced on the 19th that it will impose increased tariffs on more than 400 types of steel and aluminum derivative products, raising the tariff rate to 50%. The measures took effect on the 18th.
The affected products include wind turbines, mobile cranes, bulldozers, and other heavy equipment, as well as hundreds of items such as railway vehicles, furniture, compressors, pump products, and more.
The U.S. Department of Commerce stated that 407 categories have been included in the list of steel and aluminum derivative products this time, and all related products containing steel or aluminum components will be subject to the 50% tariff.
The new tariffs also cover imported automotive exhaust system components as well as electrical steel required for electric vehicles. Some foreign automakers previously urged the U.S. not to impose tariffs on related parts, as U.S. domestic production capacity is insufficient to meet current demand.
Alan F. Estevez, Under Secretary of Commerce for Industry and Security, said in a statement: “This move expands the scope of steel and aluminum tariffs, closes loopholes that enable circumvention, and helps promote the continued revitalization of the U.S. steel and aluminum industries.”
It is still unclear how goods already en route to the United States should be handled, and it is also uncertain whether metal tariffs will be levied in addition to national tariffs.
In addition, the difficulty in imposing tariffs on derivative products lies in determining the percentage of the target materials contained in a particular item.
U.S. freight forwarding company Flexport noted in a blog post, “For many brands, this means having to chase suppliers for detailed information: the weight of the aluminum, percentage of customs value, and the country of casting/smelting.”#
Flexport pointed out that the compliance burden “is enormous.”