Trump Administration Prepares to Soften Steel and Aluminium Tariffs

This analysis is based on the Invezz report [0] published on February 13, 2026, which cited a Bloomberg report regarding the Trump administration’s review of its steel and aluminium tariff regime. The administration is preparing to soften parts of its tariff regime, particularly targeting derivative product duties that companies have found difficult to calculate and enforce.

The tariff policy shift represents a significant moment in U.S. trade policy, coming after sustained pressure from multiple fronts. U.S. businesses have borne substantial costs, with Congressional Budget Office (CBO) and Federal Reserve studies indicating that American consumers absorb approximately 90% of tariff costs. Global allies, particularly the European Union, have expressed concerns about the breadth of the tariffs, while lawmakers from both parties have voiced opposition to certain aspects of the tariff regime.

The immediate market reaction was notable, with aluminium prices falling on the London Metal Exchange following the report, suggesting markets anticipated some form of tariff relief. The USTR and Commerce Department are reportedly reviewing duties imposed last year, with plans to narrow the tariff list covering derivative products and improve implementation through Customs and Border Protection.

The tariff softening initiative reveals several important dynamics in U.S. trade policy formulation. First, the administration faces genuine enforcement challenges with derivative products—items made with steel and aluminium that span multiple industrial sectors. These products have proven complex to classify and tariff, creating confusion for businesses and administrative burdens for customs officials.

Second, the economic burden on consumers has become politically untenable. The 90% cost pass-through to U.S. consumers documented by CBO and Fed studies provides substantial ammunition for tariff critics in Congress and the business community. This economic reality, combined with bipartisan congressional opposition, creates significant political pressure for policy adjustment.

Third, the timing of this review coincides with ongoing US-EU trade negotiations, where the EU has proposed a 15% tariff ceiling. The administration may be seeking to create diplomatic space for negotiations by demonstrating willingness to moderate its tariff approach. However, this softening could also affect U.S. bargaining leverage in these same negotiations.

The reported tariff softening carries several risk dimensions. Policy uncertainty remains high—no specific timeline has been announced, and implementation details are unclear. The narrow focus on derivative products may create inconsistencies in tariff application across different product categories. Congressional dynamics present another layer of complexity; while both parties oppose certain tariffs, President Trump is expected to veto any legislative attempt to override his tariffs on Canadian products.

There is also potential for trade negotiation leverage to be diminished. If the U.S. appears willing to soften its tariff position, trading partners may adopt more aggressive negotiating stances, potentially extract concessions beyond what the administration intends to offer.

The potential tariff softening creates opportunities for businesses that have faced elevated input costs due to the tariffs. Downstream manufacturers in sectors including automotive, construction, and consumer appliances may benefit from reduced material costs. Companies that had previously diversified supply chains away from U.S. sources may now have incentive to re-evaluate procurement strategies.

For global trading partners, particularly the EU, this development provides momentum for broader trade normalization discussions. The narrowed tariff focus could facilitate more targeted bilateral negotiations.

The Trump administration is reviewing steel and aluminium tariffs imposed in 2025, with emphasis on derivative products that businesses find difficult to calculate and enforce. The review involves the USTR and Commerce Department, which plan to narrow the tariff list and improve implementation through Customs and Border Protection.

The policy shift responds to mounting pressure from U.S. businesses, global allies, and lawmakers from both parties. Economic studies indicate U.S. consumers bear approximately 90% of tariff costs. The EU has expressed concerns about tariff breadth and proposed a 15% tariff ceiling in broader trade negotiations.

Market reaction included aluminium price declines on the London Metal Exchange following the report. Specific timeline and implementation details remain forthcoming, with significant uncertainty regarding the ultimate scope of tariff modifications.