President Donald J. Trump has signed proclamations to close existing loopholes and exemptions on steel and aluminum imports, aiming to protect America’s critical industries from unfair trade practices. The move strengthens the domestic steel and aluminum industries, which have been harmed by global excess capacity and subsidized exports.
The President is reinstating a 25% tariff on steel imports and increasing tariffs on aluminum imports to 25%. Key reforms include eliminating alternative agreements, applying strict “melted and poured” standards, expanding tariffs to downstream products, and cracking down on duty evasion schemes. The country exemptions granted previously have created loopholes exploited by China and others with excess capacity.
The President is exercising his authority under Section 232 of the Trade Expansion Act of 1962 to adjust imports and protect national security. This statute allows the President to adjust imports threatening national security, as seen in previous tariffs on steel and aluminum. The reinvigorated tariffs aim to revitalize domestic industries and achieve sustainable capacity utilization.
The new tariffs will support the original objective of revitalizing the domestic steel and aluminum industries and achieving 80% capacity utilization. The move aims to end unfair trade practices and global dumping of steel and aluminum, flooding the US market with cheap imports. Foreign nations have been subsidized by their governments to flood the market, weakening domestic production.
Studies have shown that tariffs can be an effective tool for achieving economic and strategic objectives. A 2024 study found that President Trump’s tariffs strengthened the US economy and led to significant reshoring in industries like manufacturing and steel production. The tariffs reduced imports from China, stimulated more US production, and had a minimal impact on prices.
The move is seen as a strong support for US manufacturers, with thousands of jobs gained and higher wages in the metals industry. Steelmakers have praised President Trump’s America First trade policy, which led to a wave of investment across the US, including over $10 billion committed to build new mills.
Source: https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-restores-section-232-tariffs