The US Department of Commerce on Tuesday said that it would hike steel and aluminum tariffs on more than 400 products including wind turbines, mobile cranes, appliances, bulldozers and other heavy equipment, along with railcars, motorcycles, marine engines, furniture and hundreds of other products.
The department said 407 product categories are being added to the list of “derivative” steel and aluminum products covered by sectoral tariffs, with a 50 percent tariff on any steel and aluminum content of these products plus the country rate on the non-steel and non-aluminum content.
Evercore ISI said that the move covers more than 400 product codes representing more than US$200 billion in imports last year and estimated it would raise the overall effective tariff rate by about 1 percentage point.
Photo: Reuters
The department is also adding imported parts for automotive exhaust systems and electrical steel needed for electric vehicles (EVs) to the new tariffs as well as components for buses, air-conditioners as well as appliances including refrigerators, freezers and dryers.
A group of foreign automakers had urged the department not to add the parts, saying the US does not have the domestic capacity to handle demand.
Tesla Inc unsuccessfully asked the department to reject a request to add steel products used in EV motors and wind turbines, saying there was no available US capacity to produce steel for use in the drive unit of EVs.
The new tariffs take effect immediately, and also cover compressors, pumps, and the metal in imported cosmetics and other personal care packaging such as aerosol cans.
“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,” US Under Secretary of Commerce for Industry and Security Jeffrey Kessler said.
Steelmakers including Cleveland Cliffs Inc, Nucor Corp and others had petitioned the administration of US President Donald Trump to expand the tariffs to include additional steel and aluminum auto parts.
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