US Expands Tariffs on 60 Trading Partners Amid Trade Policy Shift

The United States has introduced a broad new tariff framework affecting imports from 60 trading partners, marking a renewed escalation in its trade policy after a relatively stable period. The revised measures replace the temporary universal 10% tariff that had previously applied to most imported goods, with new tariff rates generally ranging between 10% and 12.5%, depending on the country and product category.

Despite the wider tariff expansion, the US has continued to shield several strategic energy commodities from the new duties. Crude oil, natural gas, and liquefied natural gas (LNG) remain exempt, reflecting Washington’s objective of maintaining secure and stable domestic energy supplies. In addition, selected critical minerals and other energy-related materials have also been excluded under various tariff provisions to reduce potential disruptions to essential supply chains.

Although energy commodities themselves remain protected, several products supporting the LNG value chain may still be impacted. Industrial equipment, machinery, steel, aluminum, and related components used in LNG infrastructure could remain subject to separate tariff measures introduced under different US trade authorities. These policies may increase procurement costs for companies involved in energy infrastructure development.

In a separate move announced last month, the US broadened the scope of industrial equipment covered by a 15% tariff. The expanded list now includes mobile construction and industrial machinery such as bulldozers and forklifts. However, manufacturers can qualify for a reduced 10% tariff if at least 85% of the steel or aluminum used in their capital equipment originates from the United States. This threshold has been lowered from the previous requirement of 95%, providing greater flexibility for equipment manufacturers while encouraging domestic sourcing.

The European Union has also responded to the evolving US trade measures. According to an EU statement, Washington is expected to reduce tariffs on steel and aluminum derivative products, which currently reach as high as 50%, to align with the agreed 15% ceiling. Failure to comply could prompt the EU to suspend certain trade concessions granted to the United States.

The latest tariff actions remain consistent with broader US trade objectives aimed at countering practices considered unfair or harmful to national interests. Authorities continue to utilize Section 301 tariffs to address alleged unfair trade practices and Section 232 tariffs to restrict imports viewed as threats to national security. Additionally, Section 338 tariffs targeting Canada, including duties of up to 50% on various products, are scheduled to take effect on August 19.

As tariff structures continue to evolve alongside ongoing legal disputes over refunds and implementation, businesses remain exposed to heightened uncertainty, fluctuating trade costs, and persistent market volatility across global supply chains.

Impact on Chemical Commodity Prices Tracked by ChemAnalyst

The revised US tariffs are expected to have a mixed impact on chemical commodity markets tracked by ChemAnalyst. Direct price effects on LNG, natural gas, and crude oil are likely to remain limited because these commodities are exempt. However, higher tariffs on industrial equipment, steel, aluminum, and machinery could raise capital and maintenance costs for chemical plants, LNG terminals, and downstream manufacturing facilities. This may marginally increase production costs for petrochemicals, polymers, and industrial chemicals over time. Additionally, ongoing trade uncertainty could disrupt supply chains, elevate freight and procurement expenses, and contribute to moderate price volatility across several commodity markets.