The Trump administration is considering overhauling its steel and aluminum tariff regime, a move that could raise import costs for some products while reshaping cross-border manufacturing and freight flows. This change is expected to be made through a presidential proclamation. The proposed overhaul would keep the 50% tariff on commodity steel and aluminum imports from many of the top trade partners of the U.S., including Canada and Mexico.
However, the administration’s revamp could reduce duties on derivative products made from those metals to roughly 15% to 25%, depending on the product. This reduction in tariffs could have a significant impact on North American supply chains, particularly for cross-border manufacturing across North America. The policy shift would also change how tariffs are calculated.
The proposed tariff overhaul could increase costs for importers bringing finished or semi-finished goods into the U.S. from Mexico and Canada — even when the metal originally came from the United States. This is because the new policy applies tariffs to the full value of derivative products rather than just metal content. The goal of this change is to simplify compliance, but it could have unintended consequences for importers.
In 2025, the U.S. imported roughly 13% of its steel and 60% of its aluminum consumption, with total metal imports (iron, steel, aluminum, copper) valued at approximately $154.9 billion, down slightly from 2024. The main origins of metal imports to the U.S. last year were Canada ($27.2B), China ($18.5B), Mexico ($15.7B), Chile ($9.12B) and South Korea ($7.66B).
Many of these goods are produced through North America’s integrated supply chains, where raw metals may be melted in the U.S., processed in Mexico, and assembled into finished products that cross the border multiple times before final sale. This complex network of production and trade could be significantly impacted by the proposed tariff overhaul.
The tariff overhaul is also tied to federal revenue. One estimate found that the proposed changes could raise roughly $70 billion in revenue through fiscal year 2036, helping offset revenue losses after the Supreme Court limited the administration’s tariff authority under emergency powers. This suggests that the policy shift may be motivated by a desire to generate additional revenue.
The Trump administration originally expanded Section 232 tariffs last year, doubling steel and aluminum tariffs to 50% and extending them to thousands of derivative products ranging from tractor parts to stainless steel sinks and gas ranges. The proposed overhaul could have significant implications for these industries and the companies that rely on them.
The impact of the tariff overhaul will depend on various factors, including the specific products affected by the changes and how they are used in North American supply chains. Companies must carefully consider the potential effects of this policy shift and plan accordingly to minimize disruptions.
Overall, the proposed tariff overhaul is a significant development that could have far-reaching consequences for cross-border metal trade and North American supply chains. As the industry navigates these changes, it is essential to stay informed about the latest developments and their potential impact on businesses and consumers alike.
The proposed tariff overhaul could have significant implications for North American supply chains and increase costs for importers bringing finished or semi-finished goods into the U.S. from Mexico and Canada.
