HomePolitics

Closing The Loophole: Trump Admin Revamps Metal Tariffs To Hammer Down Undervaluation

The Trump administration has issued a new proclamation overhauling Section 232 tariffs on steel, aluminum, and copper, a move intended to block foreign producers from dodging U.S. duties. The executive action fundamentally changes how customs officials calculate taxes on imported metals, shifting from a “tariff on content” approach to one based on the full customs value of the product.

For months, domestic manufacturers have complained that the previous “tariff on content” method created a massive gap for exploitation.

By only taxing specific components of an import rather than its total value, the policy allowed for widespread undervaluation and circumvention.

The Coalition for a Prosperous America (CPA), which represents a broad spectrum of metal fabricators, noted that this flaw had been particularly damaging to the steel pipe, tube, and aluminum sectors since mid-2025.

Beyond changing the valuation math, the proclamation repeals the public inclusion process while keeping a mechanism in place to add downstream products to the tariff list later.

It also maintains a 50 percent tariff rate on core copper products like bars and plates. These steps are designed to shore up an industrial base that is vital to U.S. infrastructure and defense.

Jon Toomey, President of the CPA, voiced strong support for the shift, highlighting the role of the Bureau of Industry and Security in the decision.

“After in-depth engagement with senior administration officials to address critical flaws in the Section 232 steel and aluminum tariffs, we are grateful they are taking this important action,” Toomey said. “CPA is proud to represent companies across the steel and aluminum industries that account for the vast majority of jobs in these critical sectors, and this action will help ensure these tariffs function as intended to support domestic production and American workers.”

While the new rules move to an ad valorem approach—tariffs based on the declared value of the goods—the CPA is already pushing for further refinements.

The group is advocating for a system similar to the one used for lumber, which would convert these taxes into specific or compound tariffs based on physical units, like weight or volume, at the port. This would make it much harder for importers to manipulate invoice values to pay less.

Industry leaders hope the Secretary of Commerce and the U.S. Trade Representative will use these expanded authorities to create more product-specific tariffs.

The goal is to protect the production of everything from appliances and flatware to heavy industrial goods, ensuring that the Section 232 program remains a permanent fixture in the effort to reduce dependence on foreign imports and boost “Made-in-USA” employment.

Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.

Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox