The Trump administration significantly expands the scope of steel and aluminum tariffs. Standard & Poor's predicts that its policy will bring "substantial" fiscal revenue.

The Trump administration has significantly expanded the scope of the 50% tariffs imposed on steel and aluminum products. The new tariffs officially took effect this Monday, covering over 400 product categories including firefighting equipment, machinery, construction materials, and specialty chemicals containing or made of steel and aluminum. This move is seen as a major adjustment to U.S. trade policy, with far-reaching implications expected for inflation and supply chains. Brian Baldwin, Vice President of the international freight forwarder Kuehne + Nagel, wrote on social media, "Automotive parts, chemicals, plastics, furniture components, basically anything shiny, metallic, or related to steel and aluminum, are almost all included in the list." He emphasized that this is not just an expansion of tariffs, but a strategic shift in the regulation of steel and aluminum derivative products. The U.S. Department of Commerce stated that this measure covers 407 new product categories. Jeffrey Kessler, Deputy Assistant Secretary for Industry and Security at the Department of Commerce, said, "Today's action expands the application of steel and aluminum tariffs, closes loopholes, and supports the continued revitalization of the U.S. steel and aluminum industries." However, the new tariff list only defines product categories by customs codes, making it difficult for the public to understand the scope of the impact. Experts predict that the impact will be widespread. Jason Miller, Professor of Supply Chain Management at Michigan State University, pointed out that steel and aluminum tariffs currently cover at least $320 billion in imported goods, further raising inflationary pressures in the U.S. Producer Price Index (PPI). Meanwhile, credit rating agency Standard & Poor's Global said in its Monday assessment that the "significant" fiscal revenues from the Trump administration's broad tariff policies will "largely offset" the recent decrease in fiscal revenues resulting from major tax cuts and spending cuts. S&P maintained the long-term sovereign credit rating for the United States as AA+ and the short-term rating as A-1+. However, S&P warned that if the U.S. deficit continues to expand over the next two to three years and the government fails to curb spending growth or adequately address the fiscal gap caused by tax cuts, the rating may be downgraded. S&P also cautioned that if political factors weaken the resilience of the U.S. system, the independence of the Federal Reserve, and the effectiveness of long-term policies, it may even jeopardize the U.S. dollar's status as the leading global reserve currency. Since returning to the White House in January, Trump has continued to rely on high tariffs to drive his trade agenda. In July, his "Big and Beautiful" bill officially took effect, cutting some federal spending while also significantly reducing taxes. The Congressional Budget Office estimated on July 21st that the bill will increase the federal deficit by $3.4 trillion net between 2025 and 2034, with revenue decreasing by $4.5 trillion, partially offset by $1.1 trillion in spending cuts. Nevertheless, the Trump administration's tariffs have significantly increased fiscal revenues. U.S. Treasury Department data shows that customs tariff revenue in July increased by nearly $21 billion compared to the same period last year, while the federal budget deficit expanded by about 20% over the same period. S&P stated in its report that its "outlook remains stable," as it expects the U.S. economy to continue to show resilience and effective execution of Federal Reserve policy, despite the high level of fiscal deficits. S&P pointed out that the strong growth in future tariff revenues will largely offset the fiscal pressures from tax cuts and new spending.