WASHINGTON, April 2 (Reuters) - U.S. President Donald Trump adjusted his national security tariffs on steel, aluminum and copper imports on Thursday to cut duty rates on derivative products made with the metals, simplify compliance and avoid under-reporting of import values.
In a proclamation signed by Trump, the U.S. will maintain a 50% import tariff on steel, aluminum and copper commodity imports under Section 232 of the Trade Act of 1974, but apply the rate to the prices paid by U.S. customers,
a senior Trump administration official said. It was not immediately clear how the sales price -- and resulting tariff -- would be determined.
The official said some importers had been claiming artificially reduced import values to reduce their tariff costs. Other changes announced by the Trump administration official include:
* The U.S. will eliminate the prior 50% duty on derivativeproducts made with steel, aluminum and copper if the product'scontent of the metals is below 15% by weight. The official saidthis would eliminate the Section 232 duties from products withminimal metals content such as a perfume bottle with an aluminumcap, or a dental floss container with a tiny steel cuttingblade. * Derivative products with more than 15% steel, aluminum orcopper content by weight would get a reduced, 25% tariff, but onthe entire value of the import, not just the metal content. So awashing machine or gas range made substantially from steel wouldget a flat 25% tariff. * The changes are aimed at simplifying an overly complicatedtariff regime that gave importers headaches in trying todetermine the value of the metal content of thousands ofderivative products from tractor parts to stainless steel sinksand railroad equipment. * "So it's easier, it's simpler, it's more straightforward.For many products, it'll be lower. For some products, it'll be alittle higher, but mostly, it's fine," the official said, addingthat the administration reviewed the changes with industry andhas received positive feedback. * The changes overall should have no material economicdifference from the prior tariff regime, the official said. Butby charging the 50% duty on the full sales value of commoditymetals, there may be some increased tariff revenue coming in.(Reporting by David Lawder; Editing by Daniel Wallis)
