New Tariff Measures Cover 407 Product Categories Containing Steel and Aluminum

Hundreds of goods that contain steel and aluminum became significantly more expensive to import into the United States. This is according to notices issued by US Customs and Border Protection and the Department of Commerce. 407 categories of derivative finished products are now subject to a 50 percent tariff that previously only applied to raw metals.

The expanded coverage took effect on 18 August 2025. This left importers with little opportunity to prepare. Products affected include spray deodorants, butter knives, baby strollers, and fire extinguishers. These are classified as derivative goods because they incorporate steel or aluminum components, despite the fact that they are not raw metal materials themselves.

Products packaged in aluminum containers or made from steel are affected. Examples include a range of personal care and home care items, kitchen utensils, everyday tools like scissors and screw drivers, food containers, and other products packaged in aluminum or steel materials. These are day-to-day products that can be purchased in supermarkets and main retailers.

Industrial and commercial products are also affected. Tools incorporating steel, aluminum cookware, and electronic devices will face higher costs. Automotive parts such as engine mounts and steel fasteners are included as well. The broad coverage illustrates that the tariffs target not only luxury or optional goods but also vital materials and equipment.

Officials explained that the move is intended to close loopholes in earlier trade restrictions. Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, stated that this prevents evasion and supports revitalization of American steel and aluminum industries. He noted that importers had used finished products to avoid higher tariffs applied to raw materials.

Importers face difficult choices as many goods are already in transit. Products ordered weeks or months ago must now clear customs at significantly higher costs. Businesses unable to absorb such tariffs may attempt to refuse delivery at ports. This would be a costly decision because it could mean losing money on shipping contracts, deposits, or the value of goods.

The burden could reach far beyond importers. Tariffs as high as 50 percent are rarely absorbed by businesses. Instead, they are often passed on to consumers in the form of higher retail prices. Everyday household items and consumer goods containing steel or aluminum components are therefore expected to experience noticeable price increases in the coming months.

Impact on industries is also expected to be severe since the tariffs will ripple across supply chains, particularly in construction, automotive, and electronics. These sectors rely heavily on imported products that incorporate steel and aluminum, and higher costs at the import level will increase expenses throughout domestic manufacturing and assembly operations.

This tariff expansion comes in addition to recently imposed levies on copper-based goods, further amplifying cost pressures on U.S. manufacturers. The government aims to block avenues for trade partners to ship metal in disguised form by layering tariffs on derivative products. Such measures risk fueling inflationary pressures and discouraging business investment.

Posted in Articles, Business and Economics and tagged , , , .