Section 232: Additional Tariffs
In accordance with the Executive Order titled “Adjusting Imports of Aluminum into the United States”, issued on February 11, 2025, and effective as of March 12, 2025, all countries will now be subject to a minimum of 25% ad valorem tariffs on steel and aluminum imports (previously set at 10% ad valorem), as well as specified derivative products imported into the United States.
It is crucial to understand that this Executive Order represents a modification of the original Section 232 duties, rather than a completely new action. Therefore, the tariffs adjusted within the Executive Order are not cumulative (e.g., steel 25% + 25%, aluminum 10% + 25%).
Countries that will pay more than 25% tariffs:
Russia
For aluminum products and derivatives originating from Russia, an additional tariff rate of 200% ad valorem will be applied.
Türkiye
Steel products and derivatives from Türkiye will be subject to an additional 50% ad valorem tariff.
Derivative Steel and Aluminum Products
The Department of Commerce has been tasked with developing a process, to be completed within 90 days, for identifying additional products to be subjected to tariffs for both steel and aluminum products and derivatives. Domestic steel or aluminum producers, as well as industry associations representing steel product producers, have the ability to petition the Commerce Department to add a product to the list. Commerce will make a decision within 60 days of the request as to whether the product will be added to the Annex. Customs and Border Protection (CBP) will issue guidance or regulations on the necessary documentation as soon as possible in both scenarios.
Derivative Steel Products
Any derivative product listed in the Annex of the Executive Order that does not fall under Chapter 73 of the HTSUS will be subject to an additional 25% ad valorem tariff, specifically applied to the steel content of the derivative article. However, if a derivative steel product produced in a foreign country is created using steel that was melted and poured in the United States, and proper certification is provided to Customs and Border Protection (CBP) confirming this requirement, the product will be exempt from the additional duty, regardless of its country of origin.
Derivative Aluminum Products
Similarly, any derivative product mentioned in the Annex of the Executive Order that is not classified under Chapter 76 of the HTSUS will face an additional 25% ad valorem tariff, specifically targeting the aluminum content of the derivative article. However, the extra duties on derivative aluminum products will not be applicable to aluminum items processed in a third country if the aluminum was originally smelted and cast in the United States. It is important to note that if the primary aluminum originates from Russia, the additional duty rate will be set at 200% ad valorem.
Primary aluminum is defined as new aluminum metal produced from alumina (or aluminum oxide) by the electrolytic Hall-Héroult process. Importers must provide CBP with information necessary to identify the aluminum content used in the manufacture of aluminum derivative articles.
Previous Steel and Aluminum Agreements with Trading Partners
As of March 12, all existing Steel and Aluminum agreements with trading partners, such as Argentina, Australia, Brazil, Canada, the European Union, Japan, Mexico, South Korea, Ukraine, the United Arab Emirates, and the United Kingdom, have been officially terminated. Furthermore, a 50% tariff will be enforced on Steel products and derivatives originating from Türkiye.
Exclusions
The Department of Commerce has officially terminated Steel and Aluminum exclusions. Moving forward, the Secretary will not be considering any new product exclusion requests, including those submitted prior to February 11, 2025. Importers who were previously granted an exclusion will remain valid until the expiration date or until all exempted steel and/or aluminum has been imported. Additionally, General Approved Exclusions (GAE’s) will also be terminated on March 12, 2025.
Duty Drawback
It is important to note that no duty drawback will be permitted on these tariffs.
Foreign Trade Zones
For steel and aluminum products, or their derivatives, which are subject to these tariffs and are admitted into a foreign trade zone on or after 12:01 am on March 12, they must be admitted as “privileged foreign status” unless they qualify for “domestic status.” These products will be subject to duties upon entry for consumption.
US Customs & Border Protection (CBP)
Under the Presidential Proclamation, U.S. Customs & Border Protection (CBP) has been directed to prioritize the review of product (HTS US) classifications for steel and its derivative products. CBP has also been instructed to issue penalties without considering mitigating factors.
The Presidential Aluminum Proclamation differs slightly, as CBP has been directed to prioritize the review of product classifications for aluminum articles and derivative aluminum articles. However, CBP will only assess monetary penalties in the maximum amount permitted by law if misclassification of goods is discovered to avoid duties.
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