• The U.S. has expanded steel and aluminum tariffs to cover over 400 product categories.
• The tariffs impose a 50% levy on steel and aluminum contents of several imported goods.
• Impacted products include wind turbines, railcars, and various home appliances.

The U.S. Commerce Department has announced significant hikes in steel and aluminum tariffs, affecting more than 400 product categories, including wind turbines, mobile cranes, and appliances. These tariffs entail a 50% levy on the steel and aluminum content within these products, set to take effect immediately. The expanded list includes railcars, motorcycles, and furniture, with an estimate that it will raise the overall effective tariff rate by about 1 percentage point, impacting over $200 billion in imports from last year, according to Reuters.

Under Secretary of Commerce for Industry and Security, Jeffrey Kessler, stated that this action is designed to "support the continued revitalization of the American steel and aluminum industries" by eliminating import circumvention avenues. A group of foreign automakers had previously expressed concerns, arguing against the addition of automotive parts to the tariff, citing a lack of domestic capacity to meet current demand, according to ABC News and Al Jazeera.

Analysts anticipate that the expanded tariffs could lead to price increases across various consumer goods, including children’s products and tableware. The new tariffs also encompass "derivative" products and are part of a sweeping extension of previous tariffs enforced in March. In total, these tariffs now affect approximately $320 billion worth of products, creating pressure on U.S. manufacturers, which may face heightened costs that are likely to be transferred to consumers, as noted by Reuters and Reuters.

As the tariffs take effect, businesses like Home Depot have indicated that they will need to raise prices on imported goods sold in their stores. This price adjustment follows the broader market trend impacted by similar tariffs, as Procter and Gamble announced price hikes on a number of their products to accommodate increased costs, according to ABC News and Al Jazeera.