Trump moves to soften steel, aluminium tariffs after global trade backlash: report

• Tariffs of up to 50% were imposed to address Chinese overcapacity but expanded to hundreds of derivative products, creating enforcement confusion as companies struggle to determine metal content in imported goods
• Studies by the Congressional Budget Office and Federal Reserve Bank of New York found American businesses and consumers paid nearly 90% of tariff costs in 2025, contributing to public dissatisfaction with over 70% of adults rating economic conditions as fair or poor
• The review is tied to EU trade discussions, as Europe faces a 50% duty complicating a broader trade framework, while other partners including Canada, Mexico, South Korea, and the UK have also been affected by the tariff regime

Summary: Trump Administration to Ease Steel and Aluminum Tariffs

The Trump administration is preparing to soften its steel and aluminum tariff regime following significant backlash from businesses, global allies, and lawmakers. Officials from the Office of the US Trade Representative and Commerce Department are reviewing duties imposed last year, particularly those covering derivative products that have proven difficult to calculate and enforce.

Key Developments

Tariff Structure: Current levies reach up to 50% and were expanded beyond raw metals to include hundreds of derivative products such as machinery, packaging materials, and appliances. The administration is working to narrow this list and simplify enforcement.

Economic Impact: Studies by the Congressional Budget Office and Federal Reserve Bank of New York found American businesses and consumers bore nearly 90% of tariff costs in 2025. A Pew Research Center poll showed over 70% of US adults rated economic conditions as fair or poor.

Affected Regions: The European Union faces a 50% duty, complicating implementation of a broader trade framework with a negotiated 15% tariff ceiling. Other impacted trading partners include Canada, Mexico, South Korea, and the UK.

Market Reaction: Aluminum prices fell in London following reports of the tariff review.

Political Landscape

Congressional resistance has emerged, with Republicans joining Democrats to oppose Canadian tariffs, though a presidential veto is expected. The administration previously provided carve-outs for certain food products to address grocery inflation concerns.

Timeline: US Trade Representative Jamieson Greer acknowledged implementation challenges at a December 10 Atlantic Council forum. The Commerce Department missed its 60-day deadline for approving new levies after an October invitation for tariff requests.

The review aims to reduce compliance burdens and support ongoing trade negotiations with allies.