President Donald Trump’s new tariff regime has taken an unprecedented step, imposing a 50% tariff on steel and aluminum that came into effect at 12:01 a.m. ET on Monday. This massive policy shift will have direct effects on 407 HS categories of goods. It covers some pretty mundane items such as butter knives, baby strollers, aerosol spray deodorants and fire extinguishers.
The U.S. Customs and Border Protection, along with a division of the U.S. Commerce Department, published official notices detailing the implementation of these tariffs. In addition, the sudden announcement leaves U.S.-based importers to figure out the challenges created by these unexpected new costs. Once payments are made and goods on the way now. Further, they too will be subject to this new tariff regime.
This latest action goes further by adding new higher country-specific tariffs that President Trump has enacted in recent months. Retaliation 50% tariff is on steel and aluminum alone, but that’s not the whole story. It builds on all of the recently announced tariffs on copper-based products.
Under Secretary of Commerce for Industry and Security Jeffrey Kessler explained the reason for the tariffs like this,
“Today’s action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention – supporting the continued revitalization of the American steel and aluminum industries.”
Analysts at the Telsey Group have warned about the long-term effects of these tariffs on the industry as a whole. They noted that the tariffs
“will likely ripple through the manufacturing supply chain, raising production costs across construction, automotive, and electronics sectors.”
Businesses are scrambling to adjust to these tariffs. How consumers will respond to the inevitable price increases on essential goods remains an open question. That effect might be most felt in industries that use a lot of steel and aluminum parts.