These items were added to the list of "derivative aluminum and steel products." Aluminum and steel components will be subject to a 50% tariff. The remaining portions will be subject to import tariffs based on their country of origin.
The new tariffs are effective immediately. Research from investment bank Evercore ISI indicates this policy will affect over USD 200 billion in imports to the US, based on last year's figures.
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Steel coils in a factory in Ontario, Canada. Photo: Reuters |
Steel coils in a factory in Ontario, Canada. Photo: Reuters
The US Department of Commerce also added imported components for automobile exhaust systems and electrical steel used in electric vehicles to the list of newly taxed items. Also included are components for buses, air conditioners, and appliances such as refrigerators, freezers, and dryers.
"Today’s action expands the scope of the tariffs on steel and aluminum, while closing loopholes to support the revitalization of the American steel and aluminum industries," said Deputy Secretary of Commerce for Industry and Security Jeffrey Kessler.
Previously, steel manufacturers such as Cleveland Cliffs, Nucor, and others petitioned the administration to expand tariffs to include steel and aluminum automotive parts.
However, some foreign car manufacturers called for these components to be excluded, arguing that the US lacks the production capacity to meet current demand. Tesla also urged the US Department of Commerce to reject the request for tariffs on steel products used in electric vehicle motors and wind turbines. The company stated the US does not have sufficient capacity to produce the type of steel used in electric vehicle powertrains.
The US first imposed tariffs on aluminum and steel in March at a rate of 25%. In June, US President Donald Trump doubled the tariffs. Currently, about 25% of steel and 50% of aluminum used in the US are imported. Government data shows that the tariff increases most significantly affect Canada and Mexico, the two leading exporters of aluminum and steel to the US.
Ha Thu (Reuters)
