World

US President Donald Trump Announces 50% Steel & Aluminium Tariffs; Expands Trade Measures

US President Donald Trump has announced sweeping new tariffs on imports of steel, aluminium and copper, reinforcing trade restrictions on national security grounds.

The proclamation requires authorities to apply duties to the full customs value of imported metal products and their derivatives, closing loopholes identified in earlier policies.

The administration builds on previous measures introduced under Section 232, through which it determined that rising metal imports threaten national security.

Under the revised framework, the government will impose a 50 per cent ad valorem duty on most primary steel and aluminium imports, while it will levy a 25 per cent tariff on certain derivative products.

Officials say the updated rules ensure importers pay duties based on actual transaction values rather than artificially reduced pricing.

A senior administration official explained that the changes eliminate distortions created by exporters who manipulate declared values to minimise tariffs.

The administration has also introduced a simplified system for derivative products. It will exempt items containing minimal metal, while it will impose a flat 25 per cent duty on products with substantial metal content, streamlining compliance and reducing administrative complexity.

According to the administration, earlier tariffs have already improved domestic capacity utilisation, with steel reaching about 77.2 per cent and aluminium 50.4 per cent.

Officials stress the need for further steps to raise utilisation towards 80 per cent and curb circumvention through derivative imports.

The order allows authorities to expand the list of affected products if imports threaten national security. They maintain that the measures will not significantly impact consumer prices.

The new tariffs will take effect from April 6 and will apply to all eligible goods entering the US market from that date.

Also Read: US President Donald Trump Urges Nations To Secure Hormuz

Anamika Agarwala

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