The Trump White House on Monday expanded its 50% steel and aluminum tariffs to include 407 additional product categories it considers derivatives.
"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," Undersecretary of Commerce for Industry and Security Jeffrey Kessler says.
The action comes as the result of an investigation into steel and aluminum imports and whether the quantity or circumstances of those imports threaten U.S. national security.
"By my count, the steel and aluminum tariffs now affect at least $320 billion of imports based on 2024's general customs value of imports," Jason Miller, professor of supply chain management at Michigan State University, wrote on LinkedIn. His prior estimate was $190 billion. "This will add more inflationary cost-push pressures to already climbing prices that domestic producers are charging as picked up by July's PPI data."
Miller added in a later post that these tariffs don't adhere to a United States Canada Mexico Agreement (USMCA) exemption. Negotiated during the first Trump administration, the USMCA allowed for trade of goods, notably including vehicle parts, between the countries. Previous 25% tariffs on vehicle parts excluded USMCA goods.
"Mexico and especially Canada are two of the biggest losers with many of the newly added derivative products having previously been exempt because of USMCA," Miller says.
Some of the affected product codes include those for truck trailers and parts (8716.39.0040).
In May, the American Trailer Manufacturers Coalition, an ad hoc group of manufacturers including Great Dane, Stoughton, Strick and Wabash, asked the Commerce Department to apply tariffs to the category. The group alleged foreign-made dry vans and refrigerated trailers incorporating foreign steel and aluminum are a threat to the U.S. trailer industry.
"The coalition appreciates the administration's action to address unfair trade practices impacting the U.S. dry van and reefer industry," says Robert E. DeFrancesco, counsel to the coalition and partner at Wiley Rein LLP's International Trade Practice. "Commerce's decision to impose Section 232 derivative tariffs on these imports is a critical step toward restoring fair competition and protecting American manufacturing."
Other products included in the expanded list are used trucks; components including gear boxes, mufflers and exhaust pipes, clutches, drive shafts and parts, some diesel engines, mountings and fittings, some types of bearings, parts for use with some diesel engines; fork lifts; tools; and more.
Also on the list are:
- 3811.19.00: Antiknock preparations, other. This excludes preparations based on lead compounds or those based on tetraethyl lead or on a mixture of tetraethyl lead and tetramethyl lead.
- 3820.00.00: Antifreezing preparation and prepared deicing fluids.
- 8408.20.90: Compression-ignition internal combustion piston engines, diesel or semi-diesel engines, other. Top importers using these codes, according to Descartes Datamyne, are Paccar, Caterpillar and Hino Motors Manufacturing.
- 8702.10.31: Motor vehicles for the transport of 10 or more people with compression-ignition internal combustion piston engines, diesel or semi-diesel, designed for the transport of 16 or more people.
"Auto parts, chemicals, plastics, furniture components — basically, if it's shiny, metallic or remotely related to steel or aluminum, it's probably on the list," Brian Baldwin, vice president of customs at Kuehne + Nagle International AG wrote on LinkedIn. "This isn't just another tariff — it's a strategic shift in how steel and aluminum derivatives are regulated."
For its part, the White House says these levies are no surprise.
"The president called for a new steel and aluminum product inclusions process in February," says Kush Desai, White House spokesperson. "[The Bureau of Industry and Security] established the new product inclusions process in April, and companies submitted requests for product inclusions in mid-May. Thus, it has been clear for many months that new products could be treated as steel and aluminum derivatives."
Another window for submitting inclusion requests will open in September, Commerce says. It will be announced in the Federal Register.
