According to informed sources, the Trump administration is planning to scale back certain steel and aluminum tariffs in response to mounting inflationary pressures and to bolster voter support ahead of the midterm elections. These tariffs have exacerbated an "affordability crisis" for American consumers while creating cost-calculation challenges for businesses. Sources indicate that the Office of the U.S. Trade Representative is working to address complications arising from the Commerce Department's hasty implementation of President Trump’s tariff agenda last year.

The White House has reportedly informed businesses that adjustments are under consideration, though specific details and timing remain unclear. Last summer, Trump imposed tariffs of up to 50% on imported steel and aluminum, later extending them to a range of metal products including washing machines and ovens. The move significantly impacted key U.S. trading partners such as Canada, the European Union, Mexico, and South Korea.

The inclusion of so-called "derivative products"—items containing steel or aluminum—has made it difficult for companies to determine the proportion of metals in their imported goods. This week, Trump’s import tariffs faced increased scrutiny following reports from the Congressional Budget Office and the Federal Reserve Bank of New York, both indicating that American consumers and businesses bear the majority of the tariff costs. This contradicts the president’s repeated claims that foreign exporters pay the tariffs.

Three sources familiar with the matter revealed that the administration is reviewing the list of products affected by tariffs and plans to grant exemptions for certain items. Rather than expanding the list, officials intend to launch more targeted national security investigations into specific goods. Countries including the United Kingdom, Mexico, Canada, and EU member states may benefit from any relaxation of steel and aluminum tariffs.

Trade officials from the Commerce Department and U.S. Trade Representative’s office believe the tariffs are harming consumers by raising prices on items such as disposable aluminum pie plates and beverage cans. A recent Bank of America retail analyst report also noted that aluminum and steel are used in a wide variety of products, meaning higher import tariffs ultimately affect consumers. The report highlighted that these metals are found in appliances, smartphones, baseball bats, cookware, telescopes, outdoor furniture, and even canned beverages.

Notably, removing or reducing tariffs on derivative products could facilitate progress in a U.S.-EU trade agreement. Although the two sides negotiated a framework last year, the deal has not been fully implemented. The EU continues to face 50% U.S. tariffs on its steel and aluminum exports, as well as equivalent duties on many derivative goods. The bloc is particularly concerned about the broad scope of affected products—numbering in the hundreds—and the risk of higher tariffs being imposed on various industries, which could undermine the trade agreement and its proposed 15% tariff cap.

Data show that Trump’s extensive tariff increases have pushed overall U.S. tariff levels to their highest point since before World War II. With midterm elections approaching, persistent inflation and cost-of-living pressures are weighing on the president’s approval ratings. A Pew Research Center poll this month revealed that over 70% of American adults view the current economic situation as "only fair or poor," and about 52% believe Trump’s economic policies have made things worse.

To curb food price inflation, the administration has already exempted certain popular food items. In response to rising voter dissatisfaction with living costs, Trump has previously rolled back or softened several tough tariff measures. Easing steel and aluminum tariffs is also seen as part of an effort to streamline a complex lobbying system. Since the tariffs were imposed, U.S. companies have been able to petition the government through an "inclusion process" to add competitors’ imports to the tariff list. The Commerce Department has typically approved these requests on national security grounds, affecting goods as diverse as bicycle parts.

This mechanism has led to an ever-expanding list of taxed household items and increased enforcement complexity. One official acknowledged that the current tariff system is "too complicated to enforce" and in need of simplification. A European business executive shared that a company shipped four identical containers of machinery to the U.S., only to have each charged a different tariff rate.