Trump expected to overhaul steel and aluminum tariffs: WSJ

 The Trump administration is considering an overhaul of steel and aluminum tariffs that is in part likely to reduce levies on many consumer goods, according to people familiar with the administration’s plans.

The U.S. currently charges a 50% tariff on the steel and aluminum in most imported products. Under the new plan being considered, steel and aluminum products would be sorted into groups with different rates based on the metal content in the product, some of the people said. The plan would also make the tariff apply to the entire cost of the import, according to the people familiar with the administration’s plans. Currently, the tariff only applies to the value of the steel and aluminum in a product.

Under the plan, which isn’t final, many consumer-facing goods with small amounts of steel and aluminum—for example, some kitchen accessories—would be assigned lower tariffs, potentially 15%. The lower tariff rate would be applied to the value of the entire product. Other products, potentially factory machinery, appliance parts that contain additional metals, such as copper, and other intermediate goods, could receive a 25% tariff.

Some goods made nearly entirely of steel or aluminum, particularly industrial products and building materials, would be subject to a 50% tariff on the full cost of the item. For such products made nearly entirely with the metals—such as beams, pipes and chains—the amount paid in tariffs could actually be higher than it is currently, as the tariff would be charged on the full value of a product, not just its steel or aluminum content.

The plan isn’t final, and President Trump hasn’t signed off on it. Treasury Secretary Scott Bessent said Friday on CNBC that the administration was considering a “clarification” on the tariffs “on some incidental objects,” but didn’t explain further.

A White House spokesman said the administration is implementing “a nimble and nuanced tariffs agenda” to spur more steel and aluminum manufacturing in the U.S. The spokesman added that “there is no immediate change to our current tariff regime,” and that any reporting about a change to the tariffs was speculative.

The Financial Times earlier reported that Trump was thinking about tweaking the steel and aluminum tariffs.

The plan could allow the White House to address competing concerns: decrease pressure on the prices of everyday consumer goods made with steel and aluminum, helping to address affordability concerns ahead of the midterm elections; and protect U.S. companies that make industrial products with the metals and face intense competition from imports.

The administration has tried to address affordability issues for consumers in the midst of voter concern over the cost of living. The administration late last year exempted a number of food items from its so-called reciprocal tariffs.

Customs officials have found it difficult to apply tariffs based on the value of steel and aluminum in some products made with other materials. U.S. manufacturers have complained to the administration that some imported aluminum and steel products continue to have a price advantage.

“Ensuring that unfairly traded aluminum cannot circumvent tariffs through downstream products strengthens domestic manufacturing, drives investment and supports American jobs,” said Chuck Johnson, president of the Aluminum Association, a trade group.

https://www.msn.com/en-us/money/markets/trump-s-team-considers-overhaul-to-steel-and-aluminum-tariffs/ar-AA1WjEBI