Trump Trade Team Works To Narrow Scope Of Metals Tariffs

The U.S. Trade Representative’s Office (USTR) is reviewing derivative tariffs linked to President Donald Trump’s metals duties, according to a report by the Financial Times. The review follows operational challenges tied to last year’s tariff expansion.

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The White House has informed companies that changes are being considered, though no timeline has been announced, the Financial Times reported. Aluminum prices declined in London following the report.
Spokespeople for USTR and the Commerce Department did not respond to requests for comment outside business hours in Washington.

50% Levy On Steel And Aluminum

In 2025, President Donald Trump imposed a 50% tariff on imported steel and aluminum, citing concerns over Chinese overcapacity. The measure also affected Canada, the European Union, Mexico, and South Korea.

The administration later extended the 50% duty to derivative products containing steel and aluminum. This required importers to calculate the metal content in finished goods sourced from overseas, increasing compliance requirements.

USTR chief Jamieson Greer acknowledged the complexity of the derivative tariffs during an Atlantic Council forum on Dec. 10. “There’s some complexity,” he said, adding that he had received feedback from multiple stakeholders. He stated that discussions had taken place with Customs and Border Protection to address implementation issues.

Congressional And Policy Scrutiny

Separate reports this week from the Congressional Budget Office and the Federal Reserve Bank of New York stated that U.S. consumers and businesses are bearing most of the costs of the tariffs. The findings contradict President Trump’s repeated statements that foreign exporters pay the duties.

The European Union continues to face a 50% U.S. duty on steel, aluminum, and several derivative products. Washington revises the derivative list multiple times each year.

According to Bloomberg, the EU has raised concerns that the wide range of products covered by the 50% rate, along with potential additional levies on other sectors, could undermine the existing U.S.-EU trade framework, which includes a 15% tariff ceiling.

Any rollback or narrowing of derivative tariffs would mark a change in the current metals tariff regime.