President Donald Trump on Thursday signed a proclamation that seeks to simplify tariffs on metal imports and address efforts by producers of metals outside of the United States to circumvent the import taxes, according to seniors administration officials.

The 50% duties on aluminum, steel and copper imports that Trump imposed last year have contributed to billions of dollars in costs for automakers and suppliers. The complexity in calculating the tariffs also represents additional costs and headwinds for automotive businesses and other manufacturers. Some vehicle prices also have increased, though the industry mostly has sought to absorb the increased costs because of already-existing affordability challenges.

Under the changes, metals tariffs will be applied on the price of the goods at which U.S. consumers buy them instead of on the cost of the metals as produced. Additionally, products with metal content making up less than 15% of an item's weight won't face the additional metals tariff, just the duty imposed on the country itself. Meanwhile, products with higher metals content will face an overall 25% tariff on the total value of the product. Fully metal products like steel coils and aluminum sheet metal, however, remain subject to the 50% levy.

Trump signed the order on the anniversary of "Liberation Day" when his administration last year introduced tariffs on dozens of countries, citing unfair trade barriers that ranged from tariffs to currency manipulation and intellectual property violations. He also signed an order for 100% tariffs on U.S.-patented pharmaceutical imports under Section 232 of the Trade Expansion Act of 1962, though the order has a mechanism to reduce or eliminate the duties for onshoring.

Trump originally imposed the metals tariffs on the cost of the metals as produced. That value globally declined last year, according to the senior administration officials, who said the producers were reporting artificial lower numbers to limit cost increases, but then selling to U.S. consumers at higher prices. Steel prices are up 17% year-over-year.

Tariff revenues missed expectations for that reason, and the change will prevent products from exporters to the United States from avoiding the tariffs, the administration officials said.

Companies also previously needed to calculate the value of metals of a product, find the tariff on that and then add it to the duty on the rest of the item. They calculated that by taking the remaining value of the good and the duty rate imposed on the country of origin.

The reworked metals tariffs gets rid of that math. A product is either subject to the metals tariffs or not. If the metals represent less than 15% of the object's weight, the entire value of the product is subject to the country's duty rate. If it is greater than that, the entire value of the product will have a 25% tariff.

Seniors administration officials denied that the changes would worsen affordability challenges, but acknowledged some items may see a higher tariff while others may see a lower tariff as a result of the adjustments.

General Motors Co.'s gross total in tariffs last year was $3.1 billion, Ford Motor Co. paid $2 billion and Chrysler and Jeep parent Stellantis NV reported about $1.4 billion.

Trump instituted the metals tariffs under Section 232, which was not subject to the U.S. Supreme Court's decision in February to overturn duties Trump imposed under the International Emergency Economic Powers Act of 1977.

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