In a significant tactical shift, President Donald Trump is reportedly considering a reduction or partial reversal of the aggressive 50% tariffs on steel and aluminum imports. According to reports on February 12, 2026, the administration is reviewing the current tariff list to provide relief for U.S. manufacturers struggling with high input costs for appliances, automobiles, and construction.
This potential “pivot” is widely viewed as an attempt to cool inflation and stabilize the economy ahead of the crucial 2026 Midterm Elections in November.
The Proposed “Surgical” Approach
Rather than a blanket removal of the Section 232 and IEEPA tariffs, the administration is moving toward a more targeted “exclusion-first” policy.
- Exemptions for Essential Goods: The White House is reviewing a list of consumer products—including washing machines, ovens, and HVAC systems—that saw price spikes after tariffs were raised to 50% in late 2025.
- National Security Refocus: Sources suggest the administration will halt the broad expansion of the tariff list and instead focus on “targeted national security investigations” for very specific high-tech alloys and strategic materials.
- The “Inflation Firewall”: Internal memos reportedly highlight that reducing metal tariffs could lower the Consumer Price Index (CPI) by an estimated 0.2% to 0.4% within six months.
Recent Precedents for Tariff Relief
This shift follows several high-profile “resets” in U.S. trade policy during the first two weeks of February 2026:
| Recent Action | Date | Detail |
| US-India Reset | Feb 6, 2026 | Reciprocal tariffs slashed from 50% to 18%. |
| Russian Oil Penalty | Feb 6, 2026 | Executive order removed the 25% penalty on India for oil imports. |
| Advanced Chips | Jan 15, 2026 | Narrow 25% tariff on AI chips (H200/MI325X) with supply chain exemptions. |
| EU/Swiss Pacts | Jan 2026 | Re-implementation of framework deals after brief Greenland-related tensions. |
Political and Judicial Pressure
The move comes as the Trump administration faces mounting pressure from two key fronts:
- Legislative Pushback: On February 11, the U.S. House of Representatives voted 219-211 to rescind tariffs on Canadian goods, signaling a rare bipartisan fracture in support for broad trade wars.
- Supreme Court Oversight: The U.S. Supreme Court is currently reviewing a case challenging the President’s use of International Emergency Economic Powers (IEEPA) to set tariffs. A ruling that narrows executive discretion could force the administration to preemptively lower rates.
“A tariff is a beautiful word, but it must be used like a scalpel, not a sledgehammer, when we are fighting the inflation left behind by the previous administration.” — Reported White House internal briefing note.
Impact on Domestic Production
While the “Big Steel” lobby and groups like the American Iron and Steel Institute (AISI) have cheered the 50% protections, downstream manufacturers in the Midwest “Rust Belt” have warned that the high cost of raw materials is causing job losses in the tool-and-die and fabrication sectors.
Estimated Economic Impact of Reversal:
- Automotive: Potential reduction of $1,200–$2,500 in the MSRP of North American-assembled vehicles.
- Appliance Sector: Anticipated 10–15% drop in the retail price of premium kitchen appliances.
- Construction: Lower costs for structural steel could revive stalled infrastructure and housing projects in high-cost states.
