The United States has excluded over 178 imported steel products from tariffs it put on imports earlier this year, the New York Timeshas reported.
The decision, which has infuriated US producers has been welcomed by the European Union and means nearly one-quarter of all steel exports to the United States can enter the country under normal rules.
Of 13 million tonnes in annual steel imports into the United States, 3.2 million tonnes are now exempt.
Administration officials justified their action on technical grounds, but it indicates the White House has been forced to backpedal on its protection efforts, according to the report.
Domestically, companies that use steel were complaining they could not obtain the specialty products they needed. Internationally, the administration had been fiercely attacked by all its largest trading partners.
The European Union, Japan and other countries denounced the new tarriffs, introduced earlier this year, as a violation of international trade treaties and filed legal complaints at the World Trade Organization.
The European Union had also threatened to strike back with retaliatory tariffs on American products such as orange juice and motorcycles.