On April 2, 2026, the Trump administration took long-anticipated action to adjust how tariffs apply to “derivative products” containing steel, aluminum and copper. Under the new proclamation, issued under Section 232 of the Trade Expansion Act of 1962, most derivative products will now face a 25% tariff on the full value of the imported product. This replaces the earlier approach where these products faced a 50% tariff on their metal content and a separate tariff on their non-metal content. These changes took effect on April 6, 2026.

Imports consisting entirely or almost entirely of steel, aluminum or copper remain subject to the 50% tariff. While the rate for most derivative products drops from 50% to 25%, subjecting the full value of covered products to the 25% rate will result in higher tariffs on most impacted products. However, a smaller set of derivative products containing significant amounts of metal will see an effective decrease in tariffs.

In addition, the proclamation subjects "certain metal-intensive industrial equipment and electrical grid equipment” to a lower 15% tariff through 2027, “to accelerate the massive industrial base buildout currently underway across the United States," according to a White House fact sheet.

Products made abroad with U.S. steel, aluminum or copper will also be subject to lower tariffs of 10%. Products made of 15% or less steel, aluminum or copper will no longer be subject to Section 232 metals tariffs; however, these products will remain subject to other applicable tariffs.

Imports of certain steel and aluminum products from the United Kingdom will be subject to 25% or 15% tariffs, provided that at least 95% of the metal they contain was smelted, cast, melted or poured in the United Kingdom (UK). Tariff reductions made to implement prior agreements with the UK, European Union, Japan and South Korea in accordance with the WTO Agreement on Trade in Civil Aircraft also remain in effect. Russian-origin aluminum remains subject to a 200% tariff.

The inclusions process for adding new derivatives to the list of covered products has been terminated, with the secretary of commerce and U.S. trade representative now authorized to jointly make changes to specific products subject to these tariffs.

To read more on the changes introduced and next steps, please click here for analysis from ECA's public policy counsel, Brownstein Hyatt Farber Schreck.