Tariffs re-emerge as a planning risk
U.S. officials simplified how tariffs are calculated for steel and aluminum—a change that could raise costs for many automakers—and President Trump warned he could impose a 50% tariff on China if reports about arms shipments to Iran prove true. Those moves bring tariffs back into the cost and supply-chain calculus for hardware-heavy businesses. (autonews.com) (cnbc.com)
Tariffs are back in boardroom planning after Washington changed how some metal duties are calculated and President Donald Trump floated a new 50% levy on China. (whitehouse.gov) The White House said on April 2 that articles made entirely or almost entirely of steel, aluminum or copper will pay 50% on full value, while derivative products substantially made of those metals will pay 25% on full value. Products with 15% or less steel, aluminum or copper content will no longer face Section 232 metals tariffs. (whitehouse.gov) That is a break from the 2025 approach for hundreds of derivative products, when Commerce said the steel and aluminum tariff applied to the metal content and the non-metal content remained subject to other tariffs. Commerce added 407 tariff codes to that derivative list in August 2025. (federalregister.gov) The legal change arrived in Proclamation 11021, published April 9 in the Federal Register, after the administration said earlier steel and aluminum actions had “eliminated loopholes” and improved the tariff regime. Customs and Border Protection also posted implementation guidance on April 3. (federalregister.gov) (cbp.gov) For automakers and suppliers, the practical issue is simple: a duty on the full value of a part can cost more than a duty on just its metal content. Automotive News reported in March that tariffs had already cost automakers at least $35.4 billion since 2025. (autonews.com) The pressure is not limited to steel and aluminum. CNBC reported on April 13 that Trump said China could face a 50% tariff if reports about a Chinese shipment of man-portable air defense systems to Iran prove true. (cnbc.com) Trump made that threat in a Fox News phone interview after CNN reported that United States intelligence assessments suggested an impending shipment. CNBC said the reported shipment remained unverified, and Trump said he doubted the reports even as he raised the tariff warning. (cnbc.com) The administration argues the metal tariffs are rebuilding domestic capacity. The White House said new steelmaking capacity is expected to come online in West Virginia, Arkansas and South Carolina, and pointed to a new aluminum smelter joint venture announced for Oklahoma. (whitehouse.gov) The result is a wider tariff map for companies that buy heavy parts, industrial equipment and imported components. The rates, the calculation method and the list of covered products are all moving at once. (whitehouse.gov) (federalregister.gov)
