00:00The Trump administration is preparing a new tiered system for its tariffs on steel and aluminum products in order to
00:06simplify the process.
00:07Joining us now is Bloomberg's Brendan Murray.
00:10So we've been speaking to people familiar with what's going to come out today, Brendan.
00:14And what are they telling us?
00:15Well, what they're telling us is the Trump administration is finally hearing the pleas from the American importers
00:21who are having a real hard time complying with this steel and aluminum tariff program and all the products that
00:28they hit.
00:29So what it sounds like and our reporting tells us that the president is going to announce something of a
00:35simplification of that
00:37to where it's easier for companies to decide in their customs declarations what amount of steel or aluminum in those
00:45products they have to comply with.
00:48So it's a step in the direction of helping companies manage through the tariff disruptions and the extra costs.
00:57But it's certainly not any step backwards from the steel and aluminum tariffs that they've applied.
01:03Well, so how were derivative products treated before?
01:05Was it a self-reporting system?
01:07So it was you had to determine the amount of that steel or aluminum in that particular product.
01:14And then you had a tariff based on the quantity of it.
01:18What they're going to do now is base it on the price of the overall good that contains the metal.
01:25So it would appear the administration thinks will make it less complicated and make it easier to figure out what
01:34the tariff rate is going to be on those products.
01:37If the White House is shifting tariff from content now to the full value, how are we doing the calculation?
01:44Is it going to make it more costly or less costly for the importers?
01:48It's going to. We don't know yet.
01:50And we'll have to wait to see what the White House announces in terms of the details of this.
01:55But it's certainly not going to make things less costly.
01:59The tariff rates will still apply.
02:01It's just going to be the 50 percent and the 25 percent.
02:04But they'll they're going to move it around.
02:06And the and what those rates apply to will be different.
02:10And so it it doesn't sound like it's going to make anything less costly or or reduce the tariff burden
02:17on on American importers.
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