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US escalates metal trade war with new 50% tariffs

7 Apr 2026 15:21 reported by Joy Liu

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US President Trump signed a proclamation on April 2, implementing a broad adjustment of the US metal import system effective April 6, 2026.

This policy raises tariffs on steel, aluminum, and copper to a maximum of 50% ad valorem. The order expands the scope of Section 232 of the Trade Expansion Act to include processed derivatives and finished goods, calculating duties based on the full customs value rather than just metal content.

The White House aims to eliminate loopholes and protect national security by reducing reliance on foreign supply chains. Under these updated rules, derivatives face a 25% tax, though rates may drop to 10% if products utilize US-smelted and cast raw materials.

Government data indicates that previous measures have already lifted domestic steel capacity utilization from around 72.3% in 2027 to the current 77.2%. This latest escalation intends to further increase American production and secure critical infrastructure against global trade threats.

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