The Trump administration has expanded existing steel and aluminum tariffs by 50%, affecting an additional 400 goods, including tableware, motorcycles, and assorted children’s products. The big news, which went into effect on Monday of this week. It will put U.S. manufacturers at a competitive disadvantage and cause increased prices for American consumers.
Yet, these tariffs were initially introduced back in March. Today, combined they cover $320 billion of goods – a substantial jump from the $190 billion they covered. The new regulations bring back a 50% tariff. This tariff only applies to the part of a good that is produced with imported steel or aluminum. For example, a German-made steak knife would be subject to a 50% tariff simply because of the steel that it contains.
Yet the U.S. Commerce Department has deemed the expansion of these tariffs to be critical. They want to prevent importers from finding out how to re-route around them. This is a positive, encouraging decision that is consistent with the administration’s broader record. For one, in June they announced an increase on foreign steel and aluminum imported into the U.S from 25% to 50%.
Jason Miller, a professor of supply chain management at Michigan State University, indicated that these tariffs could pose challenges for domestic manufacturers. Imported finished goods, such as consumer products, textiles, and electronics, are getting costlier. Those increased costs will eventually be passed through to consumers in the competitive market.
“Today’s action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention – supporting the continued revitalization of the American steel and aluminum industries,” – Under Secretary of Commerce for Industry and Security Jeffrey Kessler
While manufacturers continue to navigate the legal and practical implications of these changes, consumers are already starting to bear the burden of increased production costs. The additional costs associated with these tariffs will result in increased costs for consumer products from coffee pots to clothing.
Brian Baldwin, a noted industry expert, summarized the extensive reach of the tariff list, stating, “Basically, if it’s shiny, metallic, or remotely related to steel or aluminum, it’s probably on the list.” This general grouping indicates that a wide range of consumer goods could be affected by the forthcoming tariffs.
