The U.S. Donald Trump administration said it would impose a 25% tariff based on product price on derivative products with high steel, aluminum, or copper content.
On the 2nd (local time), President Trump signed a proclamation adjusting steel tariffs that includes these measures. Previously, a "50% tariff" was imposed according to the share of steel and other content in the product, but going forward, a flat 25% tariff will be applied to the price of derivative finished goods.
According to the proclamation, products in which steel, aluminum, or copper content exceeds 15% of product weight will be uniformly subject to a 25% tariff, while finished goods with metal content of 15% or less will be exempt from this item tariff altogether. This could be applied unfavorably to Korean corporations that export home appliances.
While the item tariff on steel, aluminum, and copper will remain at 50%, the basis for imposing tariffs will change to the final purchase price paid by U.S. auction buyers. This is seen as a measure to address the problem of foreign companies avoiding tariffs by underreporting steel production costs.
Regarding this, a senior official in the Trump administration said it is "strengthening the 50% tariff measure to be more effective and beneficial to our (U.S.) steel industry."
This tariff adjustment measure will take effect at 12:01 a.m. on the 6th (U.S. Eastern time).
Meanwhile, President Trump also signed a proclamation imposing a 100% tariff on pharmaceuticals not produced in the United States. However, Korea, Japan, and Europe, which have separate trade agreements, will be subject to a separate 15% tariff rate, and the United Kingdom to 10%.