Tariff Talk

Metals remain a key focus in President Trump’s trade agenda, from the zinc and copper in U.S. pennies to aluminum and steel imports. While the administration moves to phase out penny production, a broader effort aims to strengthen domestic metal production and manufacturing through revised tariffs taking effect March 12, 2025.

This week, President Trump issued a proclamation restoring the 25% tariff on steel imports and eliminating existing country exemptions and alternative arrangements. The product exclusion process is also being terminated. These tariffs apply in addition to other applicable duties. The administration argues that previous exemptions contributed to increased steel imports from exempted countries, undermining efforts to strengthen domestic manufacturing. Under the original Section 232 duties, countries including Argentina, Australia, Brazil, Canada, Mexico, Japan, EU member states, the UK, South Korea, and Ukraine had received exemptions or alternative arrangements that will now expire. The administration also cited concerns that these arrangements created opportunities for excess steel capacity from China and other countries to enter the U.S. market.

Aluminum imports, previously subject to a 10% Section 232 tariff, will now face a 25% rate, with previous country exemptions and alternative arrangements also eliminated. The administration states that these changes are intended to strengthen domestic steel and aluminum industries and support sustainable U.S. capacity utilization of at least 80%.

The White House fact sheet cites economic analyses in support of tariffs as a trade policy tool. According to the Economic Policy Institute analysis cited by the White House, tariffs implemented during President Trump’s first term showed “no correlation with inflation” and had only a temporary effect on overall price levels. The White House also cites an Atlantic Council analysis stating that tariffs could create incentives for U.S. consumers to purchase U.S.-made products.

OCEANAIR will closely monitor updates on HTS classifications, negotiations, and Federal Register guidance.