REPORT: New Metals Tariff Rules Hike Costs
President Donald Trump signed a new presidential proclamation restructuring how Section 232 “national security” tariffs on steel, aluminum, and copper — and the finished goods made from them — are calculated.
For businesses that import anything containing metal, the changes are “significant,” according to the Cato Institute.
Under the new rules, goods made almost entirely of aluminum, steel, or copper will face a 50% tariff on the full value of the item. Derivative products “substantially made” of those metals will now incur a 25% levy.
While the rate on many derivative products dropped, the base on which the tariff rate is applied changed in a way that probably raises actual costs for most importers.
“In other words, the tariff now encompasses the cost of labor, fabrication, machining, and every other cost baked into a product’s price,” writes Clark Packard for the Cato Institute.
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