U.S. Proposes Expanding 232 Tariffs to Include Steel, Aluminum, and Copper DerivativesA · FULL TRANSLATION
- The U.S. Department of Commerce is proposing to include derivatives of steel, aluminum, and copper under Section 232 tariffs.
- This move could impact Japanese exports of related manufactured goods to the U.S.
- Public comments are currently being solicited, with a final decision expected soon.
- JETRO has advised Japanese companies to assess potential impacts and prepare contingency plans.
The U.S. Department of Commerce's proposal to expand Section 232 tariffs to include derivatives of steel, aluminum, and copper is a warning sign for manufacturers in Taiwan and Japan. As a global semiconductor and electronics manufacturing hub, Taiwan relies heavily on steel and metal products as key components in many parts. If U.S. tariffs expand, it will directly impact costs and international competitiveness. This move also reflects the U.S.'s growing protectionist trade policies, and Taiwanese companies should proactively assess supply chain risks.
According to JETRO's observations, Japanese companies have already started adjusting their export strategies, seeking alternative markets or using local materials. This is a direction worth considering for Taiwanese companies. For example, if U.S. tariffs lead to higher steel costs, Taiwanese manufacturers could consider collaborating with Japanese firms to develop alternatives or shift some production to Southeast Asia. Moreover, the U.S.'s expansion of tariffs shows an increasingly broad definition of 'national security,' and more industries could face similar measures in the future.
Looking back, the U.S. imposed high tariffs on steel and aluminum in 2018, which triggered global trade tensions. The situation was eventually eased through agreements and market adjustments. Japan secured partial exemptions at the time, but this latest expansion indicates a tougher U.S. stance. For Taiwanese companies, this serves as a reminder: the international trade environment is becoming increasingly uncertain, and businesses must be flexible and adaptable.
Going forward, Taiwanese and Japanese companies should closely monitor the outcome of the U.S. public comment period and the final decision timeline. As JETRO suggests, companies can evaluate whether product portfolios need to be adjusted and work with government agencies to seek possible subsidies or tax reductions. Additionally, the U.S. Department of Commerce is expected to make a final decision soon, which will be an important indicator of U.S. trade policy direction.
The U.S. Department of Commerce has recently proposed including derivatives of steel, aluminum, and copper under Section 232 tariffs. This move aims to expand U.S. protectionist measures and may impact Japanese exports of related manufactured goods. Public comments are currently being solicited, with a final decision expected soon. Japan's Japan External Trade Organization (JETRO) has advised Japanese companies to assess potential impacts and prepare contingency plans. Section 232 of the U.S. Tariff Act allows the government to impose high tariffs on imported goods if a particular industry is deemed to pose a threat to 'national security.' Such measures have become increasingly common in recent years. In 2018, the U.S. imposed high tariffs on steel and aluminum products, triggering global trade tensions. As a major manufacturing hub, Japan exports a significant volume of steel and metal products to the U.S., and the proposed expansion of tariffs could place pressure on related industries. JETRO recommends that companies closely monitor U.S. policy developments and evaluate whether to adjust product portfolios or seek alternative markets.