The Trump administration expands heavy import duties to over 400 products, sparking turmoil in global supply chains.
On August 18, 2025 (U.S. Eastern Time), the Trump administration announced a sweeping expansion of tariffs on imported steel and aluminum products, raising duties to 50% on a total of 407 items. Previously, only 60 categories were covered, but now the list includes auto parts, refrigerators, transformers, electronic components, and machinery.
The tariffs apply specifically to the steel and aluminum content within each product. For example, if 60% of a $100 export product is aluminum, the 50% duty will only be charged on that $60 portion, while the rest is taxed under the standard 15% rate. Nevertheless, this has created confusion and uncertainty in industries where tracking exact material ratios is complex.
The automotive industry was particularly shaken, as many companies had expected only a 15% duty on certain components. Instead, some auto parts are now subject to the full 50% tariff. As a result, shares of Korean suppliers such as Hyundai Mobis, Hyundai Wia, and Hankook Tire fell sharply on August 18. Similarly, transformers—a fast-growing export sector to the U.S.—were added to the list, putting pressure on Korean manufacturers that exported more than $600 million worth last year.
According to trade analysts, this move is part of Washington’s strategy to strengthen domestic manufacturing and reduce dependency on foreign suppliers. However, it also risks inflaming trade tensions with key partners like South Korea, Japan, and the European Union.
Looking ahead, the U.S. Commerce Department has already signaled that it will review further requests from domestic industries in September, suggesting that the list of affected products may continue to grow. This could escalate into a broader trade conflict, raising costs for manufacturers worldwide and ultimately pushing up consumer prices in the U.S.
Keyword Explanations
- Tariff (관세): A government-imposed tax on imported goods, designed to protect domestic industries but often leading to higher consumer prices and trade disputes.
- Steel and Aluminum Derivatives (철강·알루미늄 파생상품): Products that contain steel or aluminum as part of their components, such as auto parts, machinery, and electronics.
- Supply Chain Impact (공급망 충격): The ripple effect caused when tariffs raise production costs, disrupt sourcing strategies, and destabilize global markets.
