Economy February 13, 2026

White House Weighs Narrowing Scope of Steel and Aluminum Tariffs

Administration reviews product list and explores targeted probes as pressure mounts over import-driven costs

By Hana Yamamoto
White House Weighs Narrowing Scope of Steel and Aluminum Tariffs

The administration is examining whether to remove some steel and aluminum products from existing tariffs and to curb further expansions of the tariff list, while planning more focused national security inquiries into specific goods. The review follows criticism that the levies function as a tax on American consumers and businesses, with a recent New York Federal Reserve study finding nearly 90% of the tariffs' costs were borne by U.S. firms and households in 2025.

Key Points

  • The White House is reviewing the product list for existing steel and aluminum tariffs of roughly 50% and may exempt some items - impacts metals and manufacturing supply chains.
  • Officials are considering halting expansion of the tariff list and pursuing targeted national security probes of specific goods - relevant to trade policy and import-dependent sectors.
  • A New York Federal Reserve study found U.S. businesses and consumers paid nearly 90% of the tariffs' costs in 2025, intensifying debate over the tariffs' effect on household and corporate costs.

U.S. policy makers are considering steps to narrow the reach of tariffs on steel and aluminum goods as they confront mounting concerns about the cost of living and political fallout tied to higher import prices. People familiar with the matter say the White House has opened a review of the products covered by the roughly 50% tariffs and is weighing exemptions for some items.

Rather than broadening the list of goods subject to the levies, officials are reported to be looking at limiting any expansion and instead initiating more narrowly targeted national security probes into particular products. The approach would shift enforcement away from sweeping tariff coverage toward case-by-case inquiries of specific imports.

Critics have argued that the tariffs act as a de facto tax on Americans, a criticism underscored by new research. A study from the New York Federal Reserve released this week found that U.S. businesses and consumers absorbed almost 90% of the cost of the tariffs in 2025. That finding has intensified scrutiny of the policy amid broader concerns about rising costs for households.

Despite the criticism, the president has maintained that tariff revenue can contribute to reducing the national debt and has repeatedly raised the prospect of returning some of those revenues to the public. At the same time, signals earlier this year and last year showed moves to retreat from some of the more stringent levies, and there was public support for a trade truce with China as import costs became a growing political issue.

The reported review reflects an effort to balance multiple pressures: the desire to retain trade leverage tied to national security claims, the political need to address inflationary pressures felt by consumers, and the operational question of how best to target tariffs without broadening economic disruption. Sources say any changes would focus on narrowing the set of covered products and pursuing targeted investigations rather than blanket additions to the tariff list.


Contextual note: Details about internal discussions and policy options come from people familiar with the review. The New York Federal Reserve study cited quantified the share of tariff costs borne domestically in 2025.

Risks

  • Political and economic risk from tariffs functioning as a tax on consumers and businesses - could pressure consumer-facing sectors and manufacturers.
  • Policy uncertainty from potential shifts between broad tariffs and targeted national security probes - may disrupt trading partners and import-dependent supply chains.
  • Unclear outcomes from any exemptions or probe-driven adjustments - markets and industries reliant on steel and aluminum inputs may face transitional disruptions.

More from Economy

Trump Vows Fresh 10% Global Tariff After Supreme Court Limits His Trade Authority Feb 20, 2026 Supreme Court Ruling Narrows Presidential Tariff Options, Treasury Secretary Says Feb 20, 2026 Supreme Court Curbs Emergency Tariff Authority, Sparking Market and Policy Reactions Feb 20, 2026 Brazil Says U.S. Supreme Court Decision Restores Country's Edge in American Market Feb 20, 2026 Musalem Says Fed Stance Appropriate; One-for-One Tariff Replacement Would Barely Shift Outlook Feb 20, 2026