Reports proliferated this week that the Trump administration is considering changes to the Section 232 steel and aluminum tariffs, particularly those on derivative items. Most notably, U.S. Trade Representative Jamieson Greer on February 17 pointed to compliance challenges faced by companies paying increased tariffs on derivative items containing steel and aluminum.
Compliance Costs: While expressing continued support for the steel and aluminum tariffs, Greer told CNBC that some companies have had to hire extra people to ensure compliance with the duties on steel and aluminum derivatives, which might warrant tweaks:
“We’re not trying to have people do so much bean-counting that they’re not running their company correctly…. You may want to sometimes adjust the way some of the tariffs are applied for compliance purposes.”
Greer was responding to earlier reporting in the Financial Times and Bloomberg, though these reports had already been dismissed on social media as “absolutely FAKE NEWS” by White House trade adviser Peter Navarro. Meanwhile, Treasury Secretary Scott Bessent had also alluded to the possibility of “clarification on some incidental objects” while also pushing back against the idea of any broader changes.
New Proclamation? The Chamber understands a new proclamation clarifying the inclusions process — which has been complicated by vague valuation guidance further obscured by officials’ oral commentary not supported in
writing — could be issued in the coming days or weeks. The proclamation is understood to be a part of the administration’s broader review of the multi-round inclusions process. Official concerns led to delays in new tariff hikes in the second round of inclusion requests late last year (which still have not been announced) and the fact that the third inclusion round was not opened as scheduled in January. The Chamber understands tariffs could also be ended on a select range of derivative items with limited aluminum or steel content.
Industry Pushback: The U.S. Chamber has weighed in several times on these matters, including by joining more than two-dozen U.S. industry groups in sending a February 10 letter seeking changes to Section 232 process. Among other requests, the letter notes that process changes should include more opportunities for public comment and industry consultation on investigations, tariff actions, and product inclusion or exclusion requests; allowing more phase-in time for new or modified duties; and clarifying how the tariffs apply to particular products or categories.
Trade Deficit Grows: In other news, the release of December trade data on February 19 showed the United States set a record high goods trade deficit in inflation-adjusted terms in 2025 (at $1.24 trillion). The administration has repeatedly said its tariff policy aims to reduce the U.S. goods trade deficit (with services trade rarely mentioned). Including services, however, the U.S. trade deficit declined by $2 billion in 2025 to $901.5 billion. In any event, the Chamber has long argued, as have nearly all economists, that the trade balance is a poor measure of whether international trade or specific trade policies are delivering economic benefits for Americans.
For further information, please contact Senior Vice President and Head of International John Murphy (jmurphy@uschamber.com) and Executive Director for International Policy Isabelle Icso (iicso@uschamber.com).