• The US is expected to reduce tariffs on over 400 steel and aluminum derivative products, easing transatlantic trade friction.
  • The move follows a recent Supreme Court ruling that invalidated some tariffs and a planned restructuring to simplify enforcement.
  • EU officials are in active talks to preserve the 2025 trade agreement amid ongoing policy uncertainty.

Efforts to restructure the US's 50% tariffs on steel- and aluminum-containing products have gained momentum, with the European Union anticipating a reduction in scope soon, according to people familiar with the matter. The current list of derivative products subject to the high tariff exceeds 400 items, complicating compliance and undermining last year's US-EU trade deal. The planned changes would not affect raw metals tariffs.

This adjustment comes amid significant shifts in US tariff policy. The US Supreme Court recently invalidated tariffs imposed under the International Emergency Economic Powers Act, effectively halving the overall US tariff rate to around 5% and striking down approximately $60 billion in duties. However, roughly half of 2025 tariffs remain in place through other legal mechanisms, specifically Section 301 on industrial machinery and electrical equipment and Section 232 on steel and aluminum.

Administration officials are planning to restructure the steel and aluminum tariffs to reduce consumer costs, acknowledging that the current system "is too complicated to enforce." The proposed changes would create a tiered system: consumer-facing goods with steel and aluminum content would face a 15% tariff applied to the entire product value, intermediate goods would have 25%, while industrial goods and construction materials would face the full 50% rate. This represents a major shift from applying tariffs solely to metal content.

EU officials, who have maintained their commitment to implementing the 2025 trade agreement, are in active talks to navigate these policy transitions. The agreement established a flat maximum tariff rate of 15% on most EU products imported into the US, but implementation has been complicated by subsequent tariff announcements. The complexity of current tariffs creates compliance challenges that directly threaten the preservation of the transatlantic trade accord.

Without a deal, businesses face continued uncertainty, influencing whether companies raise prices or await potential tariff refunds. The administration has already reversed course on agricultural tariffs and beef imports, suggesting a steel and aluminum policy change is highly possible, particularly given attention to rising consumer prices. It may also offer lower tariff rates or quotas to select countries with prior agreements, such as the United Kingdom, Japan, and South Korea.

Attempts to reach the US Trade Representative for comment were not immediately successful. The outcome will significantly affect business planning, as simplified customs processing could benefit US businesses facing higher input costs. This development follows broader transatlantic tensions in early 2026, including disputes over Greenland and Arctic security, which demonstrated the fragility of trade relations despite existing frameworks.

Correction: An earlier version misstated the timing of the Supreme Court ruling; it occurred recently, not in 2025.