The U.S. Department of Commerce has reopened a significant discussion about tariffs that has been absent for nearly 95 years. For the first time since 1930, American manufacturers can now request that their products be included in the steel and aluminum tariff protections. This new opportunity comes through a process called the “Inclusion” process, which allows businesses to submit requests three times a year—in May, September, and January.
Commerce Secretary Howard Lutnick is leading this initiative, aiming to bring back a straightforward conversation about tariffs that focuses on supporting American production. The Inclusion process is a return to the principles established in the Tariff Act of 1789, which aimed to protect U.S. manufacturers while balancing national interests and consumer costs.
Historically, tariffs were set after producers testified about their industry’s challenges. Lawmakers would then weigh these testimonies against the potential impact on consumers. This approach fostered a sense of national pride in protecting American jobs and industries. However, this changed in the early 20th century when progressive movements began to push for reduced tariffs. President Woodrow Wilson famously argued that American businesses should compete directly with foreign ones, a stance that ultimately led to the erosion of protective tariffs.
As the years passed, tariff decisions became more complicated and were often influenced by international agreements that made it difficult for domestic producers to seek relief. This left many manufacturers struggling against cheaper foreign competition without adequate support.
The new Inclusion process aims to simplify this. Instead of navigating complex legal frameworks, manufacturers can directly petition for tariff protections based on their needs. This change is expected to benefit small businesses that previously couldn’t afford the high costs of legal battles over tariffs.
However, the process is not without its challenges. Currently, all successful petitions will inherit the same duty rate imposed on raw steel and aluminum, which has recently doubled to 50%. This increase is seen as a positive step, but concerns remain about how this rate will apply to products that contain steel and aluminum. The method for calculating the content of these materials in imported goods raises questions about potential fraud and accuracy.
To improve the system, some experts suggest returning to “specific” and “compound” tariffs, which would be based on measurable units rather than percentages tied to foreign invoices. This could help prevent fraud and ensure fairer pricing for domestic producers.
Looking ahead, the Inclusion process could expand beyond just steel and aluminum. The administration has already begun exploring tariff actions for other products like wood, copper alloys, and semiconductors. This means that various sectors will have regular opportunities to advocate for their needs without the burden of expensive legal processes.
As the next Inclusion Round approaches this September, manufacturers are encouraged to submit their requests for specific tariff rates. If the administration acts on these recommendations, it could mark a significant revival of American industrial policy and support for domestic production.