Trump's tariffs on steel and aluminum: an updated overview

With Donald Trump's return to the White House in January 2025, U.S. trade policy has taken a decisive turn toward protectionism. Already during his first term (2017–2021), Trump had launched an economic strategy inspired by the principle of "America First," introducing tariffs on a wide range of products and renegotiating numerous multilateral and bilateral trade agreements.

In his second term, these policies have not only been reinstated but further strengthened. Among the very first measures adopted are those targeting steel, aluminum, and their derivatives, with the stated goal of reviving domestic industry, reducing import dependency, and reshoring key segments of the respective supply chains.
Tariff action on steel, aluminum, and related products fits into a broader strategy of industrial autonomy and negotiation leverage, where tariffs serve not only to protect the domestic economy but also to exert political and economic pressure on trade partners. However, the overlap of various executive orders, frequent changes to tariff rates, and the wide range of products involved make the current regulatory framework particularly complex to interpret.
This article aims to clarify the main proclamations — introduced or updated in recent months — affecting these products.

U.S. Protectionist Measures on Steel, Aluminum, and Related Products

First and foremost, when discussing tariffs on steel, aluminum, and their derivatives, reference must be made to two key measures signed in 2018 by the first Trump administration, under Section 232 of the Trade Expansion Act of 1962 concerning National Security:

• Proclamation 9704, which introduced an additional 10% ad valorem tariff on numerous aluminum products;
• Proclamation 9705, which instead imposed a 25% tariff on a wide range of steel products.

Subsequently, in January 2020, Proclamation 9980 extended these tariffs to derivative products made from steel and aluminum, maintaining the same rates: 10% on aluminum derivatives and 25% on steel derivatives.
During the Biden administration, these tariffs remained in effect but were largely renegotiated with strategic partners, including Canada, Mexico, and the European Union.
With Trump’s return to office in 2025, the new administration promptly reasserted a tougher stance. On February 10, 2025, two new proclamations were announced (effective from March 12), which nullified the bilateral agreements previously reached with various trade partners:

• Proclamation 10896, which updates steel-related measures and applies an additional 25% tariff on the listed steel products;
• Proclamation 10895, similar but focused on aluminum, which raises the tariff to 25% based on aluminum content (instead of the original 10%).

According to the White House, these measures were deemed necessary because the previous tariffs were considered too low and easily circumvented through transshipment, particularly involving Chinese goods entering the U.S. via third countries such as Mexico.
The new proclamations also regulated which steel and aluminum products would be subject to tariffs based on FOB price (for items composed of 100% steel or aluminum), and which would be subject to tariffs calculated based on the relative steel and aluminum content. In the latter case, if the product is not entirely made of steel or aluminum, the importer is required to declare the value of the respective content on which the tariff will apply.

A few months later, on June 3, President Trump announced the doubling of tariffs on steel and aluminum, raising them from 25% to 50%, effective June 4, 2025. This applies to all countries except the United Kingdom, which retained the 25% rate due to ongoing bilateral negotiations. Also starting from June 4, the remaining portion of product content not subject to specific steel or aluminum tariffs remains covered by the so-called "general tariff," introduced following the April 2 Liberation Day, which — at least until July 9 — remains set at 10% for the European Union.
The most recent measure, effective June 23, further expanded the list of derivative steel and aluminum products subject to the 50% additional tariffs, including major household appliances, while maintaining the principle of calculating the tariff based on the relative steel and aluminum content.
It should be noted that the only exception to the above rules concerns aluminum and/or steel derivative products: the tariff does not apply to those processed in a third country, provided they originate from materials that were melted and poured in the United States.

As previously mentioned, the large number of executive orders modifying the same regulations over time creates significant uncertainty for economic operators and complicates customs procedures.
To help navigate this complex environment, the following table summarizes the main product categories related to steel, aluminum, and their derivatives, showing the value of U.S. imports in 2024 and the average tariff applied under the new measures (understood to be inclusive of the Most Favoured Nation — MFN — rate applied by the United States to other WTO members).

Tab.1 – Steel, Aluminum, and Related Products
(updated as of June 30, 2025)

(*) The weighted average tariff was calculated by ExportPlanning based on the average steel and aluminum content found in the derivative products affected by the measures.

As shown in the table, only a limited subset of steel products remains subject to the 50% ad valorem tariff, while the vast majority of goods targeted by the latest Trump administration measures fall under the content-based tariff regime. These latter products represent a significant portion of U.S. imports: in 2024, their total value exceeded $300 billion.

When discussing the steel, aluminum, and derivative measures, it is also worth noting the 25% ad valorem tariffs introduced in April and May on automobiles and — especially — on auto parts. These measures currently follow a specific structure, summarized in the table below.

Tab.2 – Automotive and Related Components
(updated as of June 30, 2025)

The automotive sector and its components have also been significantly affected, particularly considering the importance of the latter, which accounted for over $650 billion in imports in 2024. For both categories, the average tariff stood around 30%. It should be noted, however, that products originating from countries party to the USMCA agreement are exempt from these tariffs.

Conclusions

The recent tariff measures introduced by the Trump administration represent a clear reinforcement of the United States’ protectionist strategy, with major implications for high-value sectors such as steel, aluminum, and automotive. The increase in rates and the extension to derivative products not only raise business costs but also add significant regulatory complexity and uncertainty for economic operators.
Monitoring developments in U.S.-EU trade relations in the coming weeks will be crucial — especially in light of the July 9 deadline. On its side, Europe — following the rejection of its proposal for zero tariffs on industrial goods — continues to push for a more favorable agreement, although the most realistic outcome for now appears to be the continuation of the current 10% rate introduced in April.