Introduction to Tariff Changes
Hundreds of different goods were only much more expensive to import into the United States because President Donald Trump’s 50% tariff started steel and aluminum tariffs.
Previously Excluded Products
Buttermisters, strollers, spray details and fire extinguishers, which were considered "derivative" steel and aluminum products, were previously excluded from the 50% tariff, although they were still exposed to the higher country-specific tariffs that Trump had issued in recent months.
Implementation of New Tariffs
On Friday, US trade departments published notices that US importers informed that 407 shopping categories contained steel and aluminum are immediately subject to the 50% tariffs at 12:01 p.m. ET on Monday. The non-steel and non-aluminum components of the products are exposed to other applicable taxes.
Impact on American Importers
The abrupt step leaves many American importers between a rock and a hard place, with goods that they have already paid for. If you decide to accept the goods, importers have to pay significantly higher tariffs. For example, if you say cargo operators that they should not unload their orders from US ports to avoid paying tariffs, they will probably lose money.
Statement from Trade Representative
"Today’s action extends the range of steel and aluminum tariffs and closes the bypass and supports the continued revival of the American steel and aluminum industry," said the trade in trade for industry and security Jeffrey Kessler on Tuesday.
Potential Effects on Consumers
As with any tariff, companies cannot pass on the total customs costs that they have paid to consumers by increasing prices. However, the likelihood that companies will absorb a tariff of up to 50% will probably be slimmer than that goods are entered at lower prices.
Analysts’ Predictions
In addition to the 50% tariff for copper-based goods, which recently came into force, the levies will "probably go through the supply chain of production and increase the production costs in the areas of construction, automotive and electronics sectors," said the analysts of the Telsey Group on Tuesday in a note.
