US Increases Steel, Aluminum Tariffs On Over 400 Products Including EV Parts, Wind Turbines, Railcars

The U.S. Commerce Department has announced a significant increase in tariffs on steel and aluminum for over 400 products, including wind turbines, railcars, and electric vehicle (EV) parts.

Tariffs Now Cover Appliances, Vehicles, And Heavy Gear

The U.S. Commerce Department revealed on Tuesday that it is raising tariffs on a wide range of products, including wind turbines, mobile cranes, appliances, bulldozers, and other heavy equipment, Reuters reported. The tariffs will also affect railcars, motorcycles, marine engines, furniture, and hundreds of other products.

The new tariffs will cover 407 product categories classified as “derivative” steel and aluminum goods. They will face a 50% duty on the steel and aluminum content, along with the standard country-specific rate applied to the remaining non-steel and non-aluminum portions.

These will also cover imported parts for automotive exhaust systems, electrical steel used in electric vehicles, and components for buses, air conditioners, and household appliances such as refrigerators, freezers, and dryers.

The tariffs will take effect immediately and will also cover compressors and pumps, as well as the metal in imported cosmetics and other personal care packaging like aerosol cans.

Evercore ISI said the move spanning 400+ product codes worth $200 billion in imports and could raise the effective tariff rate by about 1 point.

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Auto Industry Faces Higher Costs From Steel Tariffs

This move comes after President Donald Trump announced in May 2025 that he would be doubling U.S. tariffs on imported steel to 50%. Trump’s decision was aimed at revitalizing the American steel industry and protecting domestic jobs.

However, this decision was met with criticism, with experts warning that it could add almost $2,000 to the cost of each car and have a significant impact on the U.S. auto industry.

Trump’s tariffs were expected to drive up costs for automakers, with steel representing a significant portion of the cost of each car. This was expected to have a particularly significant impact on automakers like Ford Motor Co. (NYSE:F), which remains deeply tied to U.S.-centric manufacturing.

Steelmakers Want Broader Tariffs, Tesla Disagrees

Steel producers such as Cleveland-Cliffs (NYSE:CLF), Nucor (NYSE:NUE), and others had urged the administration to broaden the tariffs to cover more steel and aluminum auto parts.

Meanwhile, Tesla (NASDAQ:TSLA) had urged the Commerce Department to deny a request to include certain steel products used in electric vehicle motors and wind turbines, arguing that U.S. producers lack the capacity to manufacture the type of steel needed for EV drive units.

READ MORE:

• General Motors Has Several Options To Offset Tariffs, Says Bullish Analyst

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.