U.S. Expands Steel and Aluminum Tariffs to Over 400 Product Categories, Including Appliances and EV Parts

The US Commerce Department has increased steel and aluminum tariffs on over 400 products, including wind turbines, mobile cranes, appliances, and railcars. The tariffs, which take effect immediately, will raise the overall effective tariff rate by about one percentage point. The new tariffs cover additional products such as compressors, pumps, and metal in cosmetics packaging. The move aims to support the US steel and aluminum industries and shuts down avenues for circumvention.

The U.S. Commerce Department has significantly widened its steel and aluminum tariffs, impacting over 400 products. These tariffs, which took effect immediately, include wind turbines, mobile cranes, appliances, railcars, and numerous other heavy equipment categories. The new tariffs also cover compressors, pumps, and metal used in cosmetics packaging [1].

The expansion covers 407 product categories, adding to the existing list of “derivative” steel and aluminum products subject to sectoral tariffs. The tariffs apply a 50% rate on steel and aluminum content, plus the country rate on non-steel and non-aluminum content. This move is estimated to raise the overall effective tariff rate by around 1 percentage point [1].

The new tariffs include imported parts for automotive exhaust systems, electrical steel for electric vehicles, and components for buses, air conditioners, and appliances such as refrigerators, freezers, and dryers. Tesla, a prominent automaker, had previously requested that certain steel products used in electric vehicle motors and wind turbines be excluded due to the lack of domestic production capacity [1].

The decision to expand the tariffs is aimed at supporting the U.S. steel and aluminum industries and preventing circumvention of the existing tariffs. Under Secretary of Commerce for Industry and Security Jeffrey Kessler stated that the move "shuts down avenues for circumvention – supporting the continued revitalization of the American steel and aluminum industries" [1].

The expansion of tariffs is part of a broader effort by the Trump administration to protect domestic industries and reduce imports. The Commerce Department's action follows earlier announcements by President Trump regarding additional tariffs on semiconductor imports [2].

This development is expected to have significant implications for various industries, including manufacturing, construction, and automotive sectors. Companies like Cleveland-Cliffs Inc. and Nucor Corp. had petitioned the administration to expand the tariffs to include additional steel and aluminum auto parts [1].

Investors and financial professionals should closely monitor the impact of these tariffs on global supply chains and the potential effects on domestic and international trade dynamics.

References:
[1] https://www.reuters.com/business/us-hikes-steel-aluminum-tariffs-imported-appliances-railcars-ev-parts-2025-08-19/
[2] https://www.hellenicshippingnews.com/us-commerce-dept-widens-products-subject-to-steel-aluminum-tariffs-2/