The U.S. is considering a new steel and aluminum tariff policy: derivative product tax rates reduced to 25%, while pure metal products remain at 50%.

Zhītōng Caijing APP reports, citing news that the Trump administration is considering imposing a 25% tariff rate on finished products made from imported steel and aluminum. The aim is to simplify the tariff structure for metal goods and help companies respond more clearly to President Trump’s import tax policies.

The report, citing sources familiar with the matter, says the new tariff rate could be announced as early as this week. The report states that the 25% tariff would apply to derivative products containing steel and aluminum, replacing the current 50% tariff rate that is levied based on the value of steel and aluminum materials in the product. Meanwhile, goods made almost entirely of steel and aluminum would still be subject to the higher 50% tariff rate.

A White House spokesperson, Kush DeSey, said the government has “consistently made clear that it is implementing a detailed, flexible, multi-pronged strategy to bring key manufacturing back to the United States,” and added that “any reports about potential administrative actions that have not yet been formally announced by the government should be viewed as unverified speculation.”

Earlier, the Trump administration imposed broad-based tariffs on steel and aluminum products. Businesses have generally said it is difficult to calculate costs, and the government has recently been working to narrow the scope of taxation to ease pressure on companies.

This comes at a time when the Trump administration is facing voter dissatisfaction with economic issues, and widespread concerns have been raised about pressures on everyday living costs. This situation may weaken the Republican Party’s efforts to maintain control of Congress in the November midterm elections.

Last year, Trump imposed a 50% tariff on imported steel and aluminum from abroad, citing the need to address China’s capacity overcapacity. But this move ultimately hit other major trading partners, including Canada, the European Union, Mexico, and South Korea. Since then, so-called derivative products containing the above metals have also been added to the tariff list, forcing companies to calculate the proportion of metal in imported goods in a complicated manner, and compliance becomes substantially more difficult.