U.S. President Donald Trump. [AP Yonhap News]

The Donald Trump administration in the United States is set to announce soon a plan to impose a 25% tariff on finished products made with imported steel and aluminum, the Wall Street Journal (WSJ) reported on the 1st (local time).

Currently, the U.S. imposes a 50% tariff based on the content of steel and aluminum included in products. The new plan aims to apply a 25% tariff to the entire price of the product.

However, the existing 50% tariff will remain in effect for raw material-grade products, which are primarily composed of metals.

Sources familiar with the matter said that President Trump is expected to issue a presidential proclamation containing these measures as early as this week.

Consequently, while the nominal tariff rates for most steel and aluminum products will decrease, the actual tariff burden is likely to increase, the WSJ noted.

This is because the tax base itself will rise, as tariffs will be applied not only to the steel and aluminum content but also to the entire price of imported products.

The WSJ analyzed, "The Trump administration is likely to collect more taxes through this reform of steel and aluminum tariffs. This could partially offset the decrease in tariff revenue after the Supreme Court invalidated President Trump's other tariffs (reciprocal tariffs) in February."

In his first term in 2018, President Trump imposed a 25% tariff on imported steel and a 10% tariff on imported aluminum, citing Section 232 of the Trade Expansion Act.

After being re-elected, he increased the aluminum tariff to 25% and significantly expanded the scope of metal tariffs to hundreds of finished products, such as screws, furniture, and automotive parts, which were not previously subject to tariffs.

Notably, in June, he doubled the applicable tariff rate from 25% to 50%.