China's new steel and aluminum tariff policy: The tariff rate for derivative products is reduced to 25%, while pure metal products remain at 50%.

According to reports, the Trump administration is considering setting a 25% tariff rate on finished products made from imported steel and aluminum, aiming to simplify the tariff structure for metal products and help businesses better navigate President Trump's import tax policies. The report cited sources familiar with the matter who said the new tariff rate could be announced as early as this week. It stated that the 25% tariff will apply to derivative products containing steel and aluminum, replacing the current 50% tariff on products valued for their steel and aluminum materials. Products made almost entirely of steel and aluminum will still be subject to the higher 50% tariff rate. White House spokesman Kush Desai stated that the government has "consistently stated that it is implementing a detailed, flexible, multi-pronged strategy to bring key manufacturing back to the United States," and added, "Any reports about potential executive actions that have not been formally announced by the government should be considered unconfirmed speculation." Previously, the Trump administration imposed widespread tariffs on steel and aluminum products, with businesses expressing difficulties in calculating costs. The government has been working to narrow down the scope of the tariffs to alleviate pressure on businesses. This move comes as the Trump administration faces voter dissatisfaction on economic issues, with concerns about the cost of living causing widespread worry. This trend may weaken efforts by the Republican Party to maintain control of Congress in the midterm elections in November. Last year, Trump imposed a 50% tariff on foreign steel and aluminum, citing the need to address overcapacity in China. However, this measure ultimately affected other major trading partners, including Canada, the EU, Mexico, and South Korea. Subsequently, derivative products containing the metals were also added to the tariff list, leading to businesses having to navigate the complex task of calculating the metal content in imported goods, increasing compliance difficulties.