New Metal Tariff Plan Could Reshape North American Supply Chains

Key Details The Trump administration is preparing a major overhaul of steel and aluminum tariffs through presidential proclamation. The plan would maintain the current 50% tariff on raw steel and aluminum imports from major partners like Canada and Mexico, but reduce duties on derivative metal products to between 15% and 25%. Why It Matters The shift changes how tariffs are calculated by applying duties to the full value of imported goods rather than just the metal content. This could significantly increase costs for goods crossing the U.S.-Mexico and U.S.-Canada borders, even when raw materials originated in the United States. Supply Chain Impact North American manufacturing relies on integrated production chains where materials cross borders multiple times. Raw metals melted in the U.S. may be processed in Mexico and assembled into finished products for reimport, making the new valuation method particularly costly for cross-border operations. The Numbers The U.S. imported $154.9 billion in metal products in 2025, with Canada accounting for $27.2 billion and Mexico for $15.7 billion. Estimates suggest these tariff changes could generate approximately $70 billion in federal revenue through fiscal year 2036. Bottom Line Drivers hauling metal products and components across North American borders should expect increased import costs and potential supply chain restructuring as these tariffs take effect.