The Trump administration announced it will impose a blanket 25% tariff on derivative products with high steel, aluminum, and copper content. Attention is focused on whether the move will affect the export competitiveness of Korean home appliances such as washing machines and refrigerators.
The White House said Friday that President Donald Trump signed a steel tariff adjustment proclamation containing these measures. Under the previous system, a 50% tariff was applied based on the proportion of steel and other metals contained in a product. The new approach will instead apply a flat 25% tariff on the price of finished derivative products. Section 232 of the Trade Expansion Act, which serves as the legal basis for the tariff, allows the president to impose tariffs and other measures on imports that pose a risk to U.S. national security. The adjusted tariff measures take effect at 12:01 a.m. on July 6.
Under the proclamation, the administration will apply a flat 25% tariff on products where steel, aluminum, or copper content exceeds 15% of the product's weight. Finished goods with metal content of 15% or below will be exempt from the tariff. As a result, home appliances such as washing machines and refrigerators, as well as power equipment manufacturers producing transformers, are now more likely to face additional tariffs. Automobiles are likely to be exempt, as steel and aluminum account for roughly 10–15% of production costs, but auto parts could be subject to the tariff.
Separately, the administration will maintain the existing 50% commodity tariff on steel, aluminum, and copper. The Trump administration had previously raised steel and aluminum tariffs to 50% starting in June last year and imposed the same rate on copper beginning in July.
Trump also signed a proclamation on the same day imposing a 100% tariff on pharmaceuticals not manufactured in the United States. However, separate tariff rates apply to countries that have concluded individual trade agreements with the U.S. — 15% for South Korea, Japan, and Europe, and 10% for the United Kingdom. Companies will be granted grace periods before pharmaceutical tariffs take effect: 120 days for large corporations and 180 days for small and medium-sized enterprises.
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