Trump pursues new import taxes

President Donald Trump has already replaced part of the tariff system the Supreme Court struck down, using a new April 2 proclamation to reset import taxes on steel, aluminum and copper. (whitehouse.gov) (federalregister.gov) The legal switch matters. In a 6-3 ruling on February 20, the Supreme Court said Trump could not use the 1977 International Emergency Economic Powers Act to impose his sweeping reciprocal tariffs and fentanyl-related duties. (bloomberg.com) Trump’s new route relies on Section 232 of the Trade Expansion Act of 1962, a national-security statute that previous administrations also used for metals tariffs. The April 2 proclamation amended earlier steel, aluminum and copper orders instead of reviving the broader global tariff plan the court voided. (whitehouse.gov) (bloomberg.com) The biggest practical change is how duties are calculated on “derivative products,” the finished or semi-finished goods that contain those metals. For many of those imports, the tariff now applies to the full customs value of the product rather than only the metal content. (federalregister.gov) (whitecase.com) The proclamation created tiers. Goods made entirely or almost entirely of steel, aluminum or copper stay at 50%, products with moderate metal content can face lower rates, and products with less than 15% of those metals are excluded from Section 232 tariffs. (whitehouse.gov) (ey.com) That is why contractors and equipment buyers are watching electrical goods, fabricated components and specialty products instead of only raw metal. Trade lawyers and industry groups say the new formula can raise duty bills on imported products that use steel, aluminum or copper but are sold as finished equipment. (whitecase.com) (agc.org) Construction groups have been warning for months that tariff changes are feeding price volatility in copper, electrical components and distribution transformers. The National Association of Home Builders says those inputs are already pushing up housing construction costs and hurting affordability. (nahb.org) The legal fight is not over. Two dozen states sued in March to block Trump’s newer 10% global import tax, arguing that effort also oversteps presidential authority after the Supreme Court’s February ruling. (bloomberg.com) Trump has also kept pressing companies not to seek refunds on duties collected under the tariffs the court voided, even as lower-court fights over repayment continue. Bloomberg reported potential refunds could reach as much as $170 billion. (bloomberg.com 1) (bloomberg.com 2) For importers, the immediate question is no longer whether Trump will keep using tariffs. It is which law he uses next, which products Customs targets, and how fast prices move through supply chains and job bids. (content.govdelivery.com) (bloomberg.com)