Trump cuts US duty rates on steel, aluminum and copper derivative products

WASHINGTON, April 2 (Reuters) - U.S. President Donald Trump adjusted his national security tariffs on steel, aluminum and copper imports on Thursday to cut duty rates on derivative products made with the metals, simplify compliance and avoid under-reporting of import values.

In a proclamation signed by Trump, the U.S. will maintain a 50% import tariff on steel, aluminum and copper commodity imports under Section 232 of the Trade Act of 1974, but apply the rate to the prices paid by U.S. customers, a senior Trump administration official said. It was not immediately clear how the sales price -- and resulting tariff -- would be determined.

The official said some importers had been claiming artificially reduced import values to reduce their tariff costs. Other changes announced by the Trump administration official include:

• The U.S. will eliminate the prior 50% duty on derivative products made with steel, aluminum and copper if the product's content of the metals is below 15% by weight. The official said this would eliminate the Section 232 duties from products with minimal metals content such as a perfume bottle with an aluminum cap, or a dental floss container with a tiny steel cutting blade.

• Derivative products with more than 15% steel, aluminum or copper content by weight would get a reduced, 25% tariff, but on the entire value of the import, not just the metal content. So a washing machine or gas range made substantially from steel would get a flat 25% tariff.

• The changes are aimed at simplifying an overly complicated tariff regime that gave importers headaches in trying to determine the value of the metal content of thousands of derivative products from tractor parts to stainless steel sinks and railroad equipment.

• "So it's easier, it's simpler, it's more straightforward. For many products, it'll be lower. For some products, it'll be a little higher, but mostly, it's fine," the official said, adding that the administration reviewed the changes with industry and has received positive feedback.

• The changes overall should have no material economic difference from the prior tariff regime, the official said. But by charging the 50% duty on the full sales value of commodity metals, there may be some increased tariff revenue coming in.