US Suddenly Imposes 50% Tariffs on $320B Steel/Aluminum Imports, Effective Immediately

August 19, 2025 (Washington, D.C.) – The U.S. Commerce Department’s Bureau of Industry and Security (BIS) abruptly expanded tariffs to 407 steel and aluminum derivative products, effective 12:01 AM ET on August 18. The new 50% duties catch many importers off guard, potentially impacting $320 billion in annual imports.

Key Details:

⚡ Immediate Effect:

• Tariffs applied retroactively to goods in transit.

• Covered products range from wind turbines, cranes, rail vehicles to deodorants and strollers—anything "shiny, metallic, or vaguely steel/aluminum-related," per Kuehne+Nagel’s customs VP.

⚡ Importers’ Dilemma:

• Pay 50% tariffs or divert shipments (incurring losses).

• No grace period—Friday notice, Monday enforcement.

⚡ Government Justification:

• Deputy Commerce Secretary Kessler claims this "plugs tariff loopholes" and revives U.S. steel/aluminum industries.

⚡ Economic Warnings:

• Michigan State University’s Jason Miller estimates $320B in imports hit (vs. prior $190B projection).

• Risks cost-push inflation, echoing July’s PPI surge.

Impacted Industries:

Heavy Machinery: Cranes, compressors, turbines
Industrial Goods: Rail parts, pumps
Consumer Products: Strollers, spray cans

Action Steps for Importers:

✅ Verify HS codes for steel/aluminum links.
✅ Reroute non-discharged cargo if cost-effective.
✅ Expect price hikes and supply chain delays.