The United States is actively using tariffs to achieve its economic and political goals. Whether or not you agree with this policy approach, as a participant in the global economy you had better pay careful attention to the changing landscape and how it affects your business. Producers, suppliers, and even consumers of steel and aluminum, which are essential elements of many commonly purchased items, are in no different of a position. 

Here is a brief history of recent executive actions impacting steel and aluminum imports into the United States:

• In 2018, the Trump administration imposed a 25% tariff on steel imports and a 10% tariff on aluminum imports for most countries to combat trade imbalances. Argentina, Australia, Canada, and Mexico were exempted, though Argentina was limited to a pre-defined quota on imports not subject to the tariffs.
• Between 2020 and 2023, the Biden administration relaxed the tariffs on steel and aluminum imports for certain countries (including Japan, the United Kingdom, Ukraine, and, for steel and aluminum articles, the European Union) by imposing a tiered quota system in which a stipulated quantity of goods could be imported at lower rates. Conversely, the Biden administration imposed higher tariff rates on products from Russia, and then in July 2024, additional melt and pour requirements for imports of steel from Mexico.
• On March 12, 2025, President Trump reinstated the full 25% tariff on steel imports on all countries and raised tariffs on aluminum imports to 25% for all countries. That executive order eliminated the prior country-specific exemptions, thereby threatening a profound impact for participants in international trade, particularly those in manufacturing, construction, oil and gas, and other sectors that rely on steel and aluminum products.
• On April 10, 2025, global markets let out a collective sigh as Trump announced a 90-day pause on most U.S. tariffs. Chinese products were specifically excluded from the temporary stay and a baseline import tariff of 10% was imposed for most countries. There were a few other notable exceptions to the 90-day pause (more on that below). 

What are the implications for your business, and what should you do?

The widespread and temporary halt on reciprocal tariffs for foreign importers on most goods will expire on July 9, 2025. Two noteworthy exclusions from temporary pause are tariffs on steel and aluminum imports and that is not expected to change anytime soon. Tariff rates for those two industries remain at 25%, except for China, which is now at 125%. It is recommended that importers of steel and aluminum into the U.S. consider taking one or more of the following actions:

• Evaluate Contract Risk - The terms of your company’s existing agreements may provide relief from the impact of tariffs. At a minimum, you should understand how the new trade laws or governmental actions allocate risk among the contract parties and your relative rights when new tariffs are imposed. Bradley’s Construction Practice Group recently issued a blog post on tariff-related requests for equitable adjustments in U.S. government contracts. Rights to renegotiate pricing are also sometimes addressed in private party agreements. We advise that you review your existing price adjustment provisions, surcharging clauses, force majeure clauses, termination clauses, and other contractual terms addressing legal excuses for performance. Private companies should also consider whether to add tariff-specific contractual mitigation measures before signing their next service or supply agreement and whether to modify their existing terms and conditions related to the sale of steel or aluminum products.
• Consider Changing Your Production Processes - Try to take advantage of the specific tariff exclusion for steel and aluminum derivative articles. The key is that the derivative articles of steel must be melted and poured or, if aluminum, must be smelted and cast in the U.S. prior to their processing in a third country.
• Consider Any Benefits Under Trump’s “America First Investment Policy” - Under Trump’s America First Investment Policy, the plan is to create a “fast-track” process that encourages large investments (over $1 billion) from U.S. partners, while imposing conditions to ensure that investors do not collaborate with specifically identified foreign nations, such as the People’s Republic of China. While the details of the investment policy are still being formulated, the long-term aim is for companies that are not perceived as working against the economic security of the United States to benefit from quicker approvals and clearer regulatory processes, leading to faster business growth and a more predictable and favorable investment environment. While this does not directly reduce the impact of steel and aluminum tariffs, now, more than ever, may be an opportune time to invest in the construction of that large Texas steel mill that your board of directors has long considered.
• Consider Raising Contract Prices - While often a last resort for most businesses, sometimes the only way to deal with higher production costs is to share those tariff-related costs with your customers in the form of increased prices. This is especially true for smaller businesses. Timing and proper notice are critical when changing prices. Ideally, notice of increased prices should be provided within 30 days of the new tariffs going into effect.