Customer Advisory: The U.S. Imposes Additional Tariffs on Steel & Aluminum!

The U.S. Imposes Additional Tariffs on Steel & Aluminum!

Under Section 232 of the Trade Expansion Act of 1962, the U.S. government has the authority to adjust duties on imports that threaten to impair national security. Following a review by the U.S. Secretary of Commerce, it was determined that certain countries have continued to evade Section 232 measures and restrictions, which were initially imposed to protect domestic steel and aluminum industries.

As a result, President Trump has determined that steel and aluminum article imports from these countries pose a threat to national security by undermining domestic production capabilities, particularly in industries critical to defense and infrastructure. Consequently, he has decided to terminate these alternative arrangements as of March 12, 2025, and impose an additional 25% tariff on both aluminum and steel products. You may review the White House findings here on steel and aluminum, as well as the originating countries affected.

Furthermore, the White House has released proclamations expanding the Section 232 duties to cover certain additional derivative products of steel and aluminum. The additional derivative products are identified by their Harmonized Tariff Schedule of the United States (HTSUS) code in each annex.

How the tariffs will be applied depends on the derivative product’s HTSUS classification:

• For any derivative article of steel not classified in Chapter 73 of the HTSUS, the additional duty will apply only to the steel content of the derivative steel article.
• For any derivative article of aluminum not classified in Chapter 76 of the HTSUS, the additional duty will apply only to the aluminum content of the derivative aluminum article.
• All derivative articles classified in Chapters 73 or 76 will have tariff increases of 25% effective March 12, 2025.

Elimination of Country Exemptions & Tariff Exclusions

All existing country exemptions for Section 232 steel and aluminum tariffs are being eliminated, and tariffs will be set at 25% for imports into the U.S. Furthermore, no new tariff exclusions will be granted; while existing exclusions will remain valid until expiration or volume completion, whichever occurs first.

Countries Affected

Existing alternative agreements that are being terminated for steel include:

• Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, the U.K., and Ukraine.

The list of new derivative products subject to tariffs is available here, under Annex I of the Federal Register. Additional documentation requirements have been established for U.S.-processed materials.

Increased Tariffs on Russian Aluminum

Tariff rate increases on aluminum also go into effect on March 12, 2025, for all countries except Russia. Any exemptions and quota agreements will be terminated for Argentina, Australia, Canada, Mexico, the EU, and the U.K. Note that derivative articles listed in Annex I of the Federal Register from Russia, where any amount of primary aluminum is smelted or cast in Russia, will be subject to 200% duties. This increased tariff is part of broader U.S. trade measures targeting Russian metals, which have been cited as a geopolitical and economic concern.

Documentation & Compliance

Documentation will be required to support the steel or aluminum content used in the manufacture of derivative goods. It is expected that many U.S. trading partners will likely impose retaliatory duties on U.S. products.

For consultation services and assistance in complying with this program, you may also reach out to us at: customs_compliance_group@am.kwe.com

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