Trump Cuts Metal Tariffs on Some Goods, Easing Pressure on Exporters

United States · Trade

Washington’s tariff machine, which has spent a year tightening, threw a few exporters a small concession this week, lowering duties on the equipment American factories and farms need to buy.

President Donald Trump signed a proclamation adjusting U.S. tariffs on imported steel, aluminum and copper, reducing the rate charged on a range of derivative goods while leaving the core 50% duty untouched. The changes, which take effect June 8 and run through the end of 2027, are aimed at lowering input costs for American manufacturers and farmers without softening the protection given to domestic metal producers.

What the metal tariffs cut covers

Under the proclamation, agricultural equipment such as combines and harvesters will face a 15% tariff, down from the 25% rate Trump set in April for a slew of derivative steel and aluminum products. The 15% rate also extends to certain residential heating and cooling systems and to mobile industrial equipment. The order also eliminates the duty on derivative products whose metal content is less than 15% by weight, and offers a reduced 10% rate to foreign companies whose goods use at least 85% U.S.-melted-and-poured steel or aluminum. At the same time, steel racks and aluminum lithographic plates were added to the list of products facing the full 25% derivative duty.

Why the 50% base rate still matters

The concession is narrow. The 50% Section 232 tariff on raw steel, aluminum and copper, the rate that drives the headline cost for importers, stays in force, and the White House framed the adjustment as a way to support American manufacturing and agriculture rather than a retreat from its trade stance. Domestic steelmakers welcomed the broader regime, while downstream manufacturers that rely on imported metal struck a more cautious tone, noting that the relief reaches only a slice of the products they buy.

What it means for Brazil and other suppliers

For Brazil, a major metal supplier to the United States, the picture is mixed. The country exported roughly $6bn of iron, steel and aluminum globally in a recent year, with the United States its largest buyer of iron and steel. A carve-out from earlier rounds spared Brazilian pig iron, a key steelmaking input of which Brazil supplies the bulk of U.S. imports, from the full rate. The latest tweak lowers costs on some finished equipment but does little for raw-metal exporters still facing the 50% wall. It also lands at an awkward moment, as Washington pursues fresh tariffs against Brazil on separate grounds, leaving exporters to weigh a small reprieve against a widening trade dispute.