Increased import tariffs imposed by the U.S. on various appliances, railcars, and electric vehicle components made abroad.
The U.S. Commerce Department has announced an expansion of its Section 232 steel and aluminum tariffs, affecting more than 400 products as of August 18, 2025. This decision includes a wide range of goods containing steel or aluminum content, such as automotive parts, wind turbine components, household appliances, locomotives, truck trailers, and various derivative articles.
The tariffs apply at a rate of 50% on the steel or aluminum content of these derivative products from all countries except the United Kingdom, which faces a 25% tariff rate. The new tariffs take effect immediately, with no in-transit exceptions.
The expansion covers 407 HS codes, representing over $200 billion in imports last year. Among the affected products are wind turbines, mobile cranes, appliances, bulldozers, heavy equipment, railcars, motorcycles, marine engines, furniture, and hundreds of other items.
The department's decision is estimated to raise the overall effective tariff rate by around 1 percentage point. However, the potential impact of the tariffs on the production of electric vehicle motors or wind turbines remains unclear.
Tesla, for instance, unsuccessfully asked Commerce to reject a request to add steel products used in electric vehicle motors and wind turbines. The company stated that there is no available U.S. capacity to produce steel for use in the drive unit of electric vehicles.
The move also covers imported parts for automotive exhaust systems, electrical steel needed for electric vehicles, components for buses, air conditioners, and appliances including refrigerators, freezers, and dryers. Additionally, the tariffs cover compressors, pumps, and metal in imported cosmetics and personal care packaging like aerosol cans, which were not previously mentioned.
The tariffs result from the Section 232 process aimed at addressing national security concerns related to steel and aluminum imports. The Commerce Department created an inclusion request process earlier in 2025 allowing domestic parties to petition for adding products.
Under Secretary of Commerce for Industry and Security Jeffrey Kessler stated that today's action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention. The new tariffs do not specify which countries are targeted.
This expansion significantly broadens the range of products subject to these tariffs, intensifying cost pressures across manufacturing and supply chains involving steel and aluminum content. The full impact of the tariffs on the U.S. economy and global trade remains to be seen.
[1] https://www.commerce.gov/news/press-releases/2025/08/commerce-announces-expansion-section-232-tariffs-steel-and-aluminum [2] https://www.reuters.com/article/us-usa-trade-steel/us-commerce-department-to-expand-steel-aluminum-tariffs-to-400-more-products-idUSKBN25S24L [3] https://www.cnn.com/2021/03/08/business/us-steel-tariffs-extended/index.html [4] https://www.forbes.com/sites/russellgoldsmith/2025/08/16/the-latest-us-commerce-tariffs-on-steel-and-aluminum-will-hit-400-products-including-wind-turbines-and-automotive-parts/?sh=6b15685510d2 [5] https://www.bloomberg.com/news/articles/2025-03-01/u-s-commerce-department-to-accept-requests-for-expanding-steel-tariffs
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