The United States is reportedly going to impose tiered tariffs on imported steel and aluminum products.

The broad tariffs that the Trump administration plans to impose on steel and aluminum products will be structured into a tiered tax system to simplify a process that has troubled American businesses for months.

Several insiders said the U.S. will maintain a 50% tariff on a large number of steel and aluminum derivatives, with the duty calculated based on the actual value of the imported goods. Many other products will be subject to a lower 25% rate, and some will have tariffs below that level. Due to the sensitive nature of the details, those involved requested anonymity.

The announcement is expected to be made as early as Thursday in response to strong dissatisfaction from U.S. companies. These companies have complained to the Trump administration that the widespread tariffs on products containing steel and aluminum make it difficult to accurately and promptly determine the applicable duties owed.

Sources said that this difficulty, as reported by buyers, could impact corporate sales and profits, drawing the attention of U.S. Commerce Secretary Ross and U.S. Trade Representative Lighthizer.

Media reports on Wednesday indicated that the U.S. is likely to impose a 25% tariff on finished goods made with imported steel and aluminum.

The White House has not yet responded to the matter.

Tariff Outline

According to insiders, the U.S. government is shifting from calculating tariffs based on the steel and aluminum content to calculating based on the overall value of the imported product. The sources said that all goods under Chapter 72 of the tariff schedule, as well as most goods under Chapter 73, will still be subject to a 50% tariff, calculated based on the actual value of the imported goods. For example, steel pipes imported will be taxed at 50%, not just on the steel content within.

Some products under Chapter 76 will also be subject to a 50% tariff. Insiders revealed that products in other chapters involving steel and aluminum will be taxed at 25%. One source indicated that if imports do not decline or if import data does not show improvement, these tariffs could be adjusted.

One insider said that companies and officials are encountering difficulties in determining the applicable tariffs for many products, including some consumer goods. For example, dental floss contains a metal piece used for cutting but has almost no other measurable steel or aluminum components. The sources said that if the total steel or aluminum content in a product is less than 15% of the overall product, the tariff rate will be reduced to zero.

The Trump administration is currently facing voter dissatisfaction with the economy, mainly due to concerns over living costs. This situation could weaken the Republican effort to retain control of Congress in the midterm elections in November.

Last year, Trump imposed a 50% tariff on imported steel and aluminum to address China’s overcapacity issues. The measure ultimately affected other major trading partners, including Canada, the European Union, Mexico, and South Korea. Subsequently, so-called derivative products containing steel and aluminum were also included in the scope of tariffs, making it more challenging for companies to identify the steel and aluminum content in their overseas-sourced goods.

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Editor: Wang Yongsheng