President Trump – Adjustment of Steel Imports

Reinstating Tariffs on Steel Imports

Date Signed: February 10, 2025

Type of Action: Presidential Proclamation

Title: “Adjusting Imports of Steel into the United States”

Details: This proclamation reinstates a 25% tariff on steel imports and increases tariffs on aluminum imports to 25%. The action aims to address national security concerns arising from global steel overcapacity and the surge of steel imports into the U.S. market.

Key tariff provisions include:

• A 25% ad valorem tariff on imported steel articles.
• The termination of alternative agreements with trading partners, including the European Union, Japan, and the United Kingdom.
• Monitoring and enforcement measures by the Secretary of Commerce to assess ongoing impacts on the U.S. steel industry.

The administration asserts that these measures are necessary to protect domestic steel manufacturers from global overcapacity, which is projected to exceed 630 million metric tons by 2026, and to prevent displacement of U.S. production.

Implications for Corporate, Trade, and Tax Clients:

• Trade and Corporate: Companies relying on imported steel may face increased costs and should reassess supply chains, sourcing strategies, and potential domestic alternatives.
• Tax: Higher import duties may impact overall tax liabilities. Businesses should explore tax planning strategies to mitigate the financial impact of these tariffs.
• Labor and Employment: Industries dependent on steel, such as construction and manufacturing, may need to adjust workforce planning and operational strategies in response to potential price fluctuations and supply chain disruptions.

Industry Reactions:

Industry leaders have expressed concerns about the potential impact of these tariffs. Ford CEO Jim Farley stated that the 25% tariffs could create “unwarranted chaos” and escalate costs, potentially giving a competitive edge to foreign companies not subject to these tariffs. Jim Farley, Ford’s CEO Says Trump’s Tariffs Are Causing Chaos and Could Be Devastating to the Auto Industry, Business Insider (February 12, 2025). 

Analysts warn that the tariffs may increase production costs for automakers, potentially leading to higher vehicle prices for consumers. Despite sourcing a significant portion of their materials domestically, the interconnected nature of global supply chains means that U.S. automakers could still experience cost increases due to the tariffs. Alexa St. John, Trump steps up his 2018 tariffs on steel and aluminum, risking inflation on promise of more jobs, Associated Press (February 11, 2025). 

If you have any questions or require assistance navigating these new tariffs and their potential effects on your business, please contact Nolan J. De Jong or another member of the Maddin Hauser team.