The Trump administration is working to reduce the 50 percent tariffs on imported steel and aluminum, according to a source familiar with the matter. This move aims to address complications from the tariffs imposed last year, which impacted trade partners like Mexico, Canada, and the European Union. Details and the timeline remain unclear.
The United States Trade Representative's Office (USTR) is working hard to resolve complications from last year's efforts by the Commerce Department to hasten President Donald Trump's tariff agenda. A person familiar with the matter said the White House has communicated to companies that adjustments are underway, though details and the timeline are not yet clear.
The Financial Times previously reported on these reduction plans, leading to a drop in aluminum prices in London. Last year, Trump imposed a 50 percent tariff on foreign steel and aluminum to counter Chinese overcapacity, a measure that severely affected allies like Canada and Mexico, T-MEC partners, as well as the EU and South Korea. Derivative products containing these metals were later added, complicating the identification of material percentages in imported goods.
Trade Representative Jamieson Greer acknowledged two months ago the 'certain complexity' of tariffs on derivatives and noted he had heard from 'a lot of people.' At an Atlantic Council forum on December 10, Greer stated: 'We are committed to making it as seamless as possible.' He added that shifting a 70-year trade policy creates operational challenges.
This week, Congress and separate reports from the Congressional Budget Office and the Federal Reserve Bank of New York have scrutinized Trump's import taxes, finding that U.S. consumers and businesses bear most of the costs, contradicting claims that foreign exporters pay them.
Eliminating or reducing these derivative tariffs would be a positive step for the U.S.-EU trade deal, negotiated last year but not fully implemented. The EU still faces the 50 percent rate on steel, aluminum, and derivative exports, with Washington reviewing the list several times a year. The EU is concerned that the breadth of affected goods could dilute the agreed 15 percent tariff cap.
