Broad tariffs have passed in the US, impacting steel and aluminum, among other categories. Here is a summary of the new US tariffs, targeting $18 billion of Chinese imports, and comments on the aluminum and steel market.
- Steel and Aluminum: Tariff rate increases to 25% in 2024. Details are vague but it seems to be fairly broad.
- Semiconductors: Tariff rate increases to 50% by 2025.
- Electric Vehicles (EVs): Tariff rate increases to 100% in 2024.
- Batteries, Battery Components and Parts, and Critical Minerals
- Lithium-ion EV batteries: Tariff rate increases to 25% in 2024.
- Lithium-ion non-EV batteries: Tariff rate increases to 25% in 2026.
- Battery parts: Tariff rate increases to 25% in 2024.
- Natural graphite and permanent magnets: Tariff rate increases to 25% in 2026.
- Certain other critical minerals: Tariff rate increases to 25% in 2024.
- Solar Cells: Tariff rate increases to 50% in 2024.
- Ship-to-Shore Cranes: Tariff rate increases to 25% in 2024.
- Medical Products
- Syringes and needles: Tariff rate increases to 50% in 2024.
- Certain personal protective equipment (PPE), including certain respirators and face masks: Tariff rates increase to 25% in 2024.
- Rubber medical and surgical gloves: Tariff rate increases to 25% in 2026.
Some comments on steel and aluminum: last year the US imported $1.7 billion from China versus domestic production of $145 billion. Overall this may have a slightly larger impact on aluminum than steel but the increase of $425,000,000 or 25% is about .3%. Don't let the salespeople give you big increases! If they push, push back with an RFP and possibly even a reverse auction. The market has been favorable for quite some time and will remain so.
