March 2025

Tariffs on steel and aluminum imports into the United States took effect last week, triggering a strong reaction from global markets. The decision to impose these tariffs stems from a combination of economic, political, and national security concerns. U.S. officials have long argued that an overreliance on imported steel and aluminum poses a risk to domestic industries, particularly those critical to infrastructure, defense, and manufacturing. The administration has framed these tariffs as a necessary measure to protect American metal producers, ensuring their ability to compete against foreign suppliers, particularly in China, which has been accused of dumping cheap steel and aluminum into global markets.

Beyond economic protectionism, the tariffs are also part of a broader effort to reduce trade imbalances and strengthen domestic supply chains. With recent global disruptions, including supply chain bottlenecks, geopolitical instability, and the push for reshoring critical industries, policymakers have prioritized bolstering U.S. manufacturing self-sufficiency. The hope is that by making foreign steel and aluminum more expensive, domestic producers will see increased demand, leading to job growth and long-term industrial investment. However, critics argue that these tariffs could backfire by raising costs for manufacturers, increasing prices for consumers, and straining trade relationships with key allies. With industries such as automotive, construction, and consumer goods heavily reliant on metal imports, there is growing concern that businesses will pass higher costs onto customers, potentially contributing to broader inflationary pressures.

What Products Are Steel & Aluminum Derivatives?

The new tariffs, effective immediately, impose additional duties on both raw metals and finished products containing steel and aluminum. These levies, introduced under Section 232, expand beyond previous trade restrictions and target a broad range of industries, from automotive and manufacturing to construction and consumer goods. Some key industries and goods affected include:

Automotive Sector: Vehicle manufacturers and parts suppliers could see increased costs on essential components such as wheels, axles, chassis, bumpers, and braking systems.

Industrial and Heavy Machinery: The tariffs also extend to pipes, tubing, gears, fasteners, and structural components used in construction equipment, energy infrastructure, and factory machinery.

Consumer Goods and Household Products: Everyday items such as appliances, tools, cookware, aluminum cans, and furniture are not exempt from the new tariffs.

Construction and Infrastructure: Builders and developers could face rising costs on steel beams, rebar, aluminum window frames, and fencing materials, potentially affecting commercial and residential development projects.

Information on tariffs and their effects on global trade continues to evolve, and our team of compliance experts is committed to keeping you informed. Have questions on whether this will affect your import landing costs? Reach out to your JF Moran representative today for more information.