I manufacture steel/aluminum goods for the US and I have direct experience with these tariffs. Let me explain why it must be this way and how it's actually supposed to work. This is not a defense of the tariffs, just an explanation.

First of all, if you want to use tariffs to boost domestic manufacturing, you must also tax the steel/al content of finished (or intermediate) goods. Otherwise, you put your local producers at a disadvantage, making the tariffs worse.

If you only tariff raw materials, then an american manufacturer has to pay either US steel prices or imported steel + tariff to manufacture, but a company overseas can use the cheaper foreign steel.

So if you want to tax raw materials, then you also want to tax those goods where raw materials are an important part of the cost.

The US has a catalog called the "Harmonized Tariff Schedule" (HTS) which is a catalog of basically everything under the sun [0]. When the steel & AL tariffs were announced, they also published a list of all the HTS codes where the steel/al content would also be taxed.

Last week the US published a revised list of HTS codes to which these tariffs apply, and they added about 400 items to them. For example, the aluminum content of cans is now taxed when it wasn't before.

Flexport has a very cool (and useful!) tariff simulator where you can look up any item and it will tell you if the steel/al content will be subject to these tariffs: https://tariffs.flexport.com

[0]: https://hts.usitc.gov/

> Otherwise, you put your local producers at a disadvantage, making the tariffs worse.

Disadvantaging local producers is how tariffs work! Local producers would then turn to local suppliers who don't have any additional taxes applied. Tariffs are a very blunt instrument, and clumsily attempting to assuage 2nd order pain points will only give rise to 3rd (and higher) order effects.

The lesson here is: don't fuck around with multivariate dynamic systems that have achieved stability: there won't be any one knob you can twist to get a result you want on a single parameter. It'll be worse if you pick one knob and turn it all the way to 11.

Yes, it's a very logical part of a tariff regime, and tariffs penalize domestic manufacturers without it.

But wow, are tariffs (and other micro taxes) disruptive on getting things done efficiently.

Aluminum in beer cans has been subject to aluminum tariffs since April (was 25% initially and was upped to 50%).[^1]

Because they didn't use the right specificity in the announcement (used an 8 digit HTS vs 10 digit), there was some confusion for a few weeks if Beer in glass bottles was subject to it as well.

There is now an FAQ on CBP's website clarifying it is not [^2]. And they've updated to the right specificity in the new lists.

> Is HTS 2203.00.0030, Beer made from malt, In containers each holding not over 4 liters, In glass containers; subject to Section 232 duties? > No.

But yes, effective 18 August, they broadened the list a whole lot more and added things from condensed milk to deodorant to both steel and aluminum lists. An absolute nightmare for FMCG supply chain to have to figure this out.

You can agree or disagree with the current administration's trade policy but hopefully, even the staunchest proponents will admit that the execution has been sub-par. With u-turns (sometimes leaving partner countries fuming because the final published tariffs were not what were negotiated[^3]), lack of clarity and changes that land on Friday night after work hours and go into effect on Monday midnight.

[^1]: https://public-inspection.federalregister.gov/2025-05884.pdf

[^2]: https://www.cbp.gov/trade/programs-administration/entry-summ...

[^3]: https://www.nytimes.com/2025/08/08/business/japan-tariffs-us...

Is there a reason they can’t offer a flat fee? So, customs could say that since CPUs typically contain X% steel, they’ll charge that much plus Y extra; if you don’t want to pay Y you can still give the exact amount instead.

> Otherwise, you put your local producers at a disadvantage, making the tariffs worse.

Don't some tariffs motivate people to do processing offshore?

If I import 1kg of copper and machine/etch/whatever it down into products, with some wastage, maybe I should just do everything offshore and only import the final articles with 500g of copper in it.

At some point, higher tariffs on input materials will overtake the higher value of finished goods and you might as well just manufacture the whole thing offshore anyway.

This all makes a lot of sense and is also a great reason why sudden tariffs like these are absolutely bat shit insane. It's exactly what an incompetent PHB would do.

Create a bullshit system, deserve bullshit results. Everyone should be making random guesses at the content percentages and wait and see if they even spend time opening a single package let alone melting it down into constituent parts or doing spectral analysis vs a $100 item

In fact this should be a sales tactic for fedex or whomever "we bullshit the numbers for ya!"