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April 2 (Reuters) - The Trump administration plans to reshape its steel and aluminum tariff regime, keeping a 50% tariff for commodity steel and aluminum imports while reducing duties on derivative products made from the metals to 15% or 25%, depending on the product, two sources familiar with the plans said.
The details could change and will be subject to a tariff proclamation from President Donald Trump, which is expected as early as Thursday.
A White House spokesperson did not
immediately respond to Reuters' request for comment. The tariff adjustment plan was first reported by the Wall Street Journal.
The sources told Reuters that the change is being made to simplify an overly complicated tariff regime put in place last year when Trump doubled the rate of his Section 232 tariffs on steel and aluminum to 50%.
That increase also added the tariffs to thousands of derivative products made with the metals to encourage domestic production, from tractor parts to stainless steel sinks and gas ranges. But the 50% duty only applied to the steel and aluminum content of the product, creating a compliance headache for importers to calculate that figure.
The latest change will apply the lower tariff on the total value of the imported derivative product, making it easier to comply, the sources said.
Trump's proclamation is expected to include a revised annex listing products subject to the tariffs and duty rates. The sources said that steelmaking equipment may qualify for the lower 15% rate, as the Trump administration imposed the higher tariff rates last year to encourage more investment in domestic steel production.
Such equipment is often imported from Germany and Italy, such as furnace ladles and rolling-mill machinery, and made from sophisticated heat-resistant alloys.
(Reporting by David Lawder in Washington and Carlos Méndez in Mexico City; Editing by Chris Reese and Andrea Ricci)
