Commerce Department expands 50 % tariffs to steel and aluminum-derived products, deepening protectionist ripples across U.S. manufacturing

15 August 2025

Creator: Rost-9D Credit: Getty Images

On August 15, 2025, the U.S. Commerce Department dramatically broadened the scope of its 50 percent tariffs on steel and aluminum by adding 407 new product codes to the Harmonized Tariff Schedule, a move designed to extend duties to goods containing even trace amounts of these metals. As outlined in a Federal Register notice, the Bureau of Industry and Security specified that the taxed items will now include various derivative products once identified only by their non-metal components and that the valuation of their steel and aluminum parts will be calculated under the new tariff regime.

The updated duties are set to take effect on August 18, giving affected industries less than a week to prepare. The announcement gained additional political weight when President Trump, en route to a meeting with Russian President Vladimir Putin in Alaska, hinted at further tariff measures soon, including additional levies on steel and incoming duties on semiconductor imports.

The sweeping expansion signals a shift in strategy from targeting raw materials to including manufactured goods effectively sweeping in household items, machinery components, auto parts, and other widely used products. Businesses that had previously been exempt from Section 232 tariffs because their non-metal content dominated have now been dragged into the protectionist net. Analysts warn this could disrupt supply chains, inflate manufacturing costs, and complicate efforts to forecast pricing and sourcing strategies for component-heavy industries.

The timing is strategic. By augmenting the list ahead of implementation, the administration ensures maximum reach of the policy with minimal adjustment time for businesses. Trump’s accompanying comments suggest this is not the end: with semiconductors and more steel products speculated to be targeted next, the message is clear tariffs are not static relief measures but ongoing levers for reshaping U.S. industrial policy.

Manufacturers relying on steel and aluminum-intensive inputs such as automotive, construction, electronics, and infrastructure sectors may face higher procurement costs, potentially shrinking profit margins and forcing some to reconsider sourcing strategies. Labor-intensive U.S. steel sectors may benefit, but downstream producers warn that gains could be offset by reduced input affordability. International trade partners are likely to respond with complaints or retaliatory measures, further reheating debates over America’s place in global supply chains.

For consumers, the shift may translate into higher prices on finished goods ranging from appliances to electronics and machinery as the new tariffs flow through production and distribution channels. At the macroeconomic level, it raises concerns about inflationary pressure and complicates the Federal Reserve’s approach to interest rates, especially amid recent news of sticky price metrics.

This expansion forms part of a broader arc: since early 2025, tariffs have reached heights not seen in decades, touching steel, aluminum, copper, automobiles, pharmaceuticals, and more. The percentage of federal revenue derived from tariffs continues to climb, making trade policy a core pillar of the administration’s economic architecture.

When these new duties take effect on Monday, August 18, companies across sectors will be forced to adapt swiftly. Whether through absorbing costs, passing them on to consumers, or shifting strategies outright, the short-term disruption may be painful, but for the administration it’s framed as a longer-term strategy to revitalize U.S. production and national resiliency.