US revises tariffs on derivative metals to target valuation practices without easing protectionism

President Donald Trump on Thursday revised national security tariffs on imports of steel, aluminium and copper, cutting duty rates for a range of downstream products while leaving intact steep levies on the raw metals, according to a White House announcement and a senior administration official.

The proclamation preserves a 50% Section 232 tariff on commodity steel, aluminium and copper, but shifts how duties will be applied for derivative goods by basing charges on the prices ...

paid by U.S. purchasers rather than import-entry values, the White House said. The administration said the change is intended to simplify compliance and curb what it described as a practice by some importers of understating customs values to reduce tariff bills.

Details remain incomplete. It was not immediately specified how sales prices will be established or which transactional benchmarks customs will use to calculate the resulting tariffs, and the senior official acknowledged those operational specifics were still to be determined. According to Reuters reporting, the move affects derivative products made with the three metals while leaving the headline 50% rate on commodity shipments in place.

Industry groups and trading partners are likely to scrutinise the practical effects. Importers facing higher declared values could see duty bills rise, while domestic manufacturers who use processed steel, aluminium and copper may encounter altered input costs depending on how the new price-based assessments are applied. Government figures and trade data show that valuation disputes have been a recurring source of contention at the border, and the administration framed the revision as an effort to reduce evasion and improve enforcement.

The decision comes amid continuing debate over the use of national security tariffs under the Trade Expansion Act of 1962 and Section 232 of the Trade Act of 1974, which have been employed in recent years to protect U.S. metal producers. According to Reuters, the administration’s adjustment focuses on downstream goods rather than rescinding or lowering the headline commodity tariffs, signalling a tighter interpretation of valuation rules rather than a rollback of protectionist policy.

Market participants and customs experts will be watching for forthcoming guidance from the Treasury and Commerce departments that will be necessary to translate the proclamation into administrable rules. Until those implementing regulations or directives are published, companies will face uncertainty about compliance obligations and potential changes to their landed costs for products incorporating steel, aluminium or copper.

Source: Noah Wire Services