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| US tariffs |
U.S. Revises Tariff Structure on Steel, Aluminum, and Copper Imports
The U.S. government recently adjusted US steel and aluminum tariffs to simplify compliance and prevent import undervaluation. The White House confirmed that Section 232 tariffs on steel and aluminum remain at 50%, but now apply based on prices paid by U.S. consumers. Meanwhile, the method for calculating sales price and corresponding duties remains undefined. This change targets transparency and addresses challenges faced by importers and industrial buyers.
New Tariff Rules and Industrial Equipment Incentives
The Trump administration introduced exemptions for derivative products containing less than 15% metal by weight, eliminating the 50% tariff. Moreover, certain metal-intensive industrial and power grid equipment will face a 15% tariff until 2027 to stimulate domestic industrial growth. German and Italian steelmakers reportedly advocated for these lower rates for manufacturing equipment. Consequently, products exceeding 15% metal content face a reduced 25% tariff, while goods entirely made from U.S. metals incur only 10% tariffs.
EU-US Trade Dynamics and Market Impact
The European Parliament recently approved the EU-US trade agreement, contingent on U.S. compliance with tariff reductions. EU preferences will apply only if U.S. tariffs on products containing up to 50% steel and aluminum drop to 15%. Products exceeding 50% metal content risk losing preferential treatment six months after U.S. obligations remain unmet. As a result, global scrap traders, steel producers, and recyclers may adjust sourcing strategies, pricing, and supply chain planning in response.
ScrapInsight Commentary
These tariff adjustments could stabilize domestic metal prices while incentivizing U.S. industrial expansion. Reduced duties on derivative and equipment products may boost scrap metal demand in specialized sectors. Traders should monitor EU-US compliance closely, as it could affect transatlantic scrap flows and recycling economics.
