- Steel aluminum tariffs in the US will move to a tiered structure with 50% and 25% rates.
- Tariffs will apply to the full value of imported products, not just metal content.
- Some items with less than 15% steel or aluminum content will receive a zero tariff rate.
- Tariff restructuring responds to business complaints about calculation complexity.
Tiered Tariff Structure Announced
According to Bloomberg, the US government plans a tiered system for steel and aluminum tariffs. The change aims to simplify how officials calculate import duties. The new structure keeps 50% tariffs on many derivative products. It lowers rates to 25% for others, while some fall even lower.
Officials will now calculate tariffs based on total import value, not just metal content. This shift broadens the taxable base and changes cost dynamics for importers. As a result, companies may face higher or more predictable duties, depending on product mix.
Industry Pushback Drives Change
This policy change comes after months of American companies voicing frustration over the broad and complex system for steel aluminum tariffs. Many firms struggled to accurately determine duties, especially when imported items included only minor steel or aluminum components. The difficulty in calculating these charges has impacted sales and profits across the industry.
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Tariff Details by Product Category
Products listed in harmonized tariff schedule Chapter 72 and most in Chapter 73 will continue with a full 50% duty, based on total import value. Certain aluminum items in Chapter 76 also remain under a 50% duty. For developers and project owners, these added material costs could translate into higher construction expenses, especially as pricing pressure builds across supply chains. All others containing steel or aluminum will face a 25% rate. Products with under 15% steel or aluminum content will see their tariffs drop to zero. The administration indicated that tariff levels may be adjusted if import volumes do not decline as intended.
Market Reaction and Political Context
After the news, shares of major producers like Century Aluminum and Alcoa fell over 1.6% in US postmarket trading. Commercial Metals also declined 1.4%. Meanwhile, policymakers tied the tariff shift to growing economic pressure ahead of midterm elections. Voters remain focused on rising living costs. The move introduces a tiered steel and aluminum tariff system. It marks a policy adjustment that supports domestic producers and simplifies compliance.
