Trump Administration Revises Metal Tariff Structure to Close Valuation Loopholes

The Trump administration revised its Section 232 tariff framework for imported steel, aluminum, and copper on April 2, 2026, implementing a tiered rate system and applying a flat 50% duty to the full declared value of pure metals. The adjustment targets importers who under-invoice shipments to evade duties, though economists project limited macroeconomic benefits. Under the updated structure, high-metal-content products face a 25% levy, while items containing less than 15% metal by weight are exempt from additional duties. Metal-intensive industrial and grid equipment will be taxed at 15% through 2027. Goods manufactured overseas using exclusively U.S.-sourced metals will receive a reduced 10% rate. Cato Institute Vice President Scott Lincicome noted the changes will increase costs and administrative burdens without significantly boosting domestic manufacturing, foreign investment, or trade balances. The policy shift coincides with Middle East supply chain disruptions that have already elevated U.S. metal prices above global benchmarks.