Published by Global Banking & Finance Review®
Posted on August 19, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleThe US has increased tariffs on over 400 steel and aluminum products, affecting imports like EV parts and appliances, to support domestic industries.
By David Shepardson
WASHINGTON (Reuters) -The U.S. Commerce Department said on Tuesday it is hiking steel and aluminum tariffs on more than 400 products including wind turbines, mobile cranes, appliances, bulldozers and other heavy equipment, along with railcars, motorcycles, marine engines, furniture and hundreds of other products.
The department said 407 product categories are being added to the list of “derivative” steel and aluminum products covered by sectoral tariffs, with a 50% tariff on any steel and aluminum content of these products plus the country rate on the non-steel and non-aluminum content.
Evercore ISI said in a research note the move covers more than 400 product codes representing over $200 billion in imports last year and estimates it will raise the overall effective tariff rate by around 1 percentage point.
The department is also adding imported parts for automotive exhaust systems and electrical steel needed for electric vehicles to the new tariffs as well as components for buses, air conditioners as well as appliances including refrigerators, freezers and dryers.
A group of foreign automakers had urged the department not to add the parts, saying the U.S. does not have the domestic capacity to handle current demand.
Tesla unsuccessfully asked Commerce to reject a request to add steel products used in electric vehicle motors and wind turbines, saying there was no available U.S. capacity to produce steel for use in the drive unit of EVs.
The new tariffs take effect immediately and also cover compressors and pumps and the metal in imported cosmetics and other personal care packaging like aerosol cans.
"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," said Under Secretary of Commerce for Industry and Security Jeffrey Kessler.
Steelmakers including Cleveland Cliffs, Nucor and others had petitioned the administration to expand the tariffs to include additional steel and aluminum auto parts.
(Reporting by Katharine Jackson and David Shepardson in Washington and Bhargav Acharya in Toronto; Editing by Ryan Patrick Jones, David Gregorio and Matthew Lewis)
The new tariffs affect over 400 product categories including wind turbines, mobile cranes, appliances, and automotive parts.
The tariff rate is set at 50% on any steel and aluminum content of the affected products.
Foreign automakers opposed the increase, arguing that the U.S. lacks the domestic capacity to meet current demand for the parts affected by the tariffs.
The new tariffs take effect immediately, impacting various imported products including automotive components and personal care packaging.
The tariffs cover products representing over $200 billion in imports from the previous year.
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