Image Credentials: Image Title: Trump Overhauls Metal Tariffs, Shifting to Flat Tax on Finished Goods Value Source: (sora.openai) Date: April 2026. Attribution: This image was created using AI-generated imagery (sora.openai) and does not depict a real-world scene.
By Open Chronicle Staff with Agencies
WASHINGTON, D.C. – The Trump administration issued a sweeping presidential proclamation on Thursday, fundamentally restructuring the Section 232 tariff system for steel, aluminum, and copper. The new policy shifts the tax burden from the specific metal content of imported goods to their total commercial value, a move officials say will simplify customs, but which analysts warn could sharply increase costs for consumer electronics and industrial machinery.
Under the revised rules, derivative products, defined as finished goods “substantially made” of steel, aluminum, or copper, will now be subject to a 25% flat duty on their total invoice value.
Ending the “Calculation Headache”
The overhaul replaces a complex system introduced in 2025 that imposed a higher 50% rate, but only on the weight or value of the metal component within a product. Importers had frequently complained that the previous method required exhaustive and often impossible technical audits to determine the exact percentage of metal in items like washing machines, car parts, or industrial motors.
“The previous method was administratively burdensome and not worth the effort,” the White House stated in a fact sheet released Friday. “This new proclamation ensures tariffs reflect the full value of imported products, closing loopholes used to avoid supporting American workers.”
Winners and Losers in the New Tiers
The restructuring introduces several distinct categories based on metal density and origin:
-
Raw Commodities: Steel coils and aluminum sheets remain at a 50% tariff on full value
-
Derivative Products: Goods with significant metal content (over 15% by weight) face a 25% tariff on total value.
-
Strategic Infrastructure: Electrical grid and specific industrial equipment will receive a temporary 15% rate through 2027 to support domestic energy expansion.
-
American-Sourced Goods: Products manufactured abroad using 100% U.S.-sourced metals qualify for a reduced 10% rate.
-
De Minimis Exemption: Products containing less than 15% metal by weight are now entirely exempt, providing relief for goods like dental floss or certain small consumer plastics.
Economic Repercussions
While the nominal rate for finished goods has dropped from 50% to 25%, the change in the “tax base” means many importers will pay significantly more. For example, a $1,000 appliance that contains $200 worth of steel would have previously seen a $100 tariff (50% of the metal). Under the new 25% flat rule on total value, that same appliance will now carry a $250 tariff—a 150% increase in the tax paid.
Industry giants, including Samsung and LG, have reportedly begun emergency profit-and-loss assessments for their North American subsidiaries. Meanwhile, domestic groups like the Steel Manufacturers Association praised the move, arguing it prevents foreign companies from “dumping” metal-heavy goods into the U.S. market under the guise of finished products.
The policy comes as the administration continues to navigate the economic fallout of the ongoing conflict in Iran, which has already strained global energy and metal markets.