The US Commerce Department announced on Tuesday that it is expanding steel and aluminium tariffs to cover more than 400 products. The move brings appliances, wind turbines, bulldozers, mobile cranes, heavy machinery, railcars, motorcycles, marine engines, and even furniture under the new tariff regime.
According to the department, 407 product categories have been added to the list of “derivative” steel and aluminium products, which will now attract a 50 per cent tariff on any steel and aluminium content, in addition to the existing country-specific rate on other components, reported Reuters.
Imports Worth $200 Billion Affected
Investment firm Evercore ISI noted in a research report that the expanded tariffs cover over 400 product codes, representing more than $200 billion in imports during the past year. The firm estimates that the measure will push up the overall effective tariff rate by around 1 percentage point.
Items such as automotive exhaust system parts, electrical steel for electric vehicles, and components for buses and air conditioners will now face higher import duties. Appliances, including refrigerators, freezers, and dryers, have also been added to the tariff list.
Concerns from automakers And Tesla’s opposition
Foreign automakers had urged the Commerce Department not to impose duties on certain parts, citing limited domestic production capacity. Tesla, in particular, requested that the government exclude specialised steel products used in EV motors and wind turbines, arguing that the US currently lacks the ability to produce such materials domestically.
However, the company’s plea was rejected. As a result, imported compressors, pumps, and even the metal used in packaging for cosmetics and personal care items like aerosol cans will now be subject to the higher tariffs.
Commerce Department defends the decision
“Today’s action expands the reach of the steel and aluminium tariffs and shuts down avenues for circumvention – supporting the continued revitalisation of the American steel and aluminium industries,” said Jeffrey Kessler, Under Secretary of Commerce for Industry and Security.
The move follows petitions from major steelmakers including Cleveland Cliffs and Nucor, who pressed the administration to broaden tariffs to cover additional steel and aluminium auto parts. The new measures take immediate effect, further intensifying the tariff environment for international trade in industrial and consumer goods.
