Steel/Aluminum Tariff Update

A Penny For Your Thoughts

Before we get into the latest on the steel and aluminum tariffs, let's talk copper. The US government has placed their final order for blank pennies. By early 2026 there should be no new pennies in circulation. At a production cost of nearly four cents per penny, this is expected to save the government roughly $56 million annually. Finally, a decision that makes sense by not making cents ... sorry, couldn't resist.

From the United States Mint website: "The penny was one of the first coins made by the U.S. Mint after its establishment in 1792 in Philadelphia. The design on the first penny was of a woman with flowing hair symbolizing liberty. The coin was larger and made of pure copper, while today’s smaller coin is made of copper and zinc."

In 1865, when JW Hampton was founded, the front of the penny bore the Indian head design with the word LIBERTY appearing on the band across the feathered headdress bonnet.

Whether the latest change to the Section 232 tariffs ends up being penny-wise and pound-foolish remains to be seen. As of June 4th, the steel and aluminum additional import duties have been increased from 25% to 50% with the exception of the United Kingdom which remains at 25% until at least July 9th. That includes all shipments in transit that arrive on or after June 4th regardless of the departure date.

Steel and aluminum products from Canada and Mexico are also subject to the 50% additional duty as the United States-Mexico-Canada Agreement (USMCA) does not allow for duty-free treatment of these products.

The doubling to 50% includes products that fall under the aluminum or steel derivatives HTS numbers. For these products, the aluminum or steel content will be subject to the additional 50%, but not to the Reciprocal tariff (currently 10%). The non-aluminum or non-steel content will be subject to the regular rate of duty for that HTS number plus the Reciprocal tariff.

I leave you with this thought and be sure to read it to yourself using the same slow, low-energy voice of comedian Steven Wright - "If it’s a penny for your thoughts and then you put your two cents in, somebody somewhere is making a penny."