(April 2): The Trump administration is preparing to set a tariff rate of 25% on finished products made with imported steel and aluminium, according to the Wall Street Journal, an effort to streamline levies on metals and make it easier for companies to navigate President Donald Trump’s import taxes.
The tariff rate could be announced as soon as this week, the Journal reported on Wednesday, citing people with knowledge of the administration’s plans. The 25% rate would apply to derivative products, those that contain steel and aluminium, the report said, replacing a current 50% rate on the value of steel and aluminium used in products. The higher rate would still apply for goods made almost entirely of steel and aluminium, according to the Journal.
The White House did not immediately respond to a request for comment.
The administration has been working to narrow the broad tariffs it imposed on steel and aluminium products to bring relief for businesses that found it difficult to calculate.
The move comes as the Trump administration is dealing with voter discontent over the economy, fueled by worries over the cost of living. That dynamic threatens to undercut Republican efforts to retain control of Congress in midterm elections this November.
Trump last year imposed a 50% levy on foreign steel and aluminium in a measure aimed at Chinese overcapacity. The step wound up hitting other major trading partners hard, including Canada, the EU, Mexico and South Korea. Later added to the list were so-called derivative products that contained the metals, creating an arduous task for companies to identify the percentage of the materials in goods they sourced from overseas.
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