US Steel, Aluminum and Gold Imports Excluded from Reciprocal Tariffs in Major Trade Adjustment

Highlights

• Steel, aluminum, gold, and copper exempted from new reciprocal tariffs
• Section 232 duties remain, shielding domestic users from additional tariff burdens
• Relief aims to stabilize industrial metal markets amid weak demand and inflation

In a significant trade policy development, the United States has confirmed that imports of steel, aluminum, gold, and copper will be excluded from newly announced reciprocal tariffs. This exemption offers partial relief for industries heavily dependent on these essential raw materials, particularly sectors ranging from automotive and construction to household manufacturing. The announcement outlines a clear effort to prevent further cost pressures on domestic manufacturers already managing existing tariff regimes.

The White House clarified that steel and aluminum imports currently subjected to Section 232 tariffs will not face additional reciprocal duties. These metals are already operating under a 25% import duty framework, a policy first imposed as part of a broader strategy to bolster the US metals industry. Gold and copper were also specifically listed as exempt from the latest trade measures, suggesting a targeted attempt to maintain equilibrium in sensitive commodity markets.

This exemption appears to reflect a recalibrated approach to tariff enforcement, especially in light of prevailing economic challenges. While prices for steel have seen considerable appreciation—driven in part by the existing tariffs and constrained supply—market participants have simultaneously faced muted demand. The US construction sector, a traditional driver of metal consumption, continues to experience stagnation due to elevated borrowing costs and inflationary pressures that have limited project expansions and investment activity.

In parallel, domestic steelmakers have posted strong year-to-date equity performances, largely buoyed by supportive pricing conditions stemming from limited competition from overseas suppliers. ASX-listed companies with direct or indirect ties to global steel and metal markets, such as BlueScope Steel Ltd (ASX:BSL), Sims Ltd (ASX:SGM), and South32 Ltd (ASX:S32), have remained closely aligned with shifts in commodity trade flows and US tariff decisions. While demand trends remain fragile, these firms operate in a landscape where policy moves in major economies like the United States often trigger ripple effects across global trade volumes, price benchmarks, and sourcing decisions.

The preservation of Section 232 tariffs on steel and aluminum, without further escalation under the reciprocal tariff scheme, indicates a balance between protective economic measures and maintaining supply continuity for critical sectors. These metals remain integral to infrastructure development, manufacturing, and defence applications. Any sudden cost escalation due to broad-based tariffs would have placed additional strain on already tight production margins and risked cascading price pressures through finished goods supply chains.

Meanwhile, gold and copper markets have shown resilience amid shifting macroeconomic signals. The exemption of gold, traditionally a hedge asset and store of value, appears aimed at ensuring liquidity in the broader financial and investment landscape. Copper, considered a bellwether for industrial demand, plays a central role in electrical systems, renewable energy infrastructure, and electronics. ASX entities like Newcrest Mining Ltd (ASX:NCM), Evolution Mining Ltd (ASX:EVN), and Sandfire Resources Ltd (ASX:SFR) are positioned within the crosshairs of these developments, where trade flows and commodity policy influence long-term capital decisions and project viability.

Excluding these commodities from the new set of reciprocal tariffs may also help ease tensions with trade partners and avoid retaliation in strategically important sectors. At a time when inflationary concerns remain top of mind for central banks globally, decisions that prevent additional upward cost pressures on key industrial inputs are likely to receive cautious support from economic stakeholders.

Despite the exemption, underlying challenges persist. Construction demand for steel and aluminum continues to trend lower, weighed by subdued residential and commercial activity. Lending conditions remain tight, dampening appetite for large-scale infrastructure and private sector investments. While tariff relief may reduce pressure on input costs, it does not offset macroeconomic headwinds constraining end-user demand.

Going forward, attention will likely turn to how these tariff exemptions influence both upstream producers and downstream manufacturers. Steel and aluminum price movements, trade balances, and company earnings results will remain under scrutiny as investors and analysts monitor the combined impact of policy, inflation, and global economic sentiment. Companies such as Fortescue Ltd (ASX:FMG) and Rio Tinto Ltd (ASX:RIO), with diverse commodity portfolios, will also continue to assess market reconfigurations tied to US policy shifts.