Section 232 Update - Aluminum and Steel

January 27, 2020

Section 232 - Trade Expansion Act - Tariff Update

UPDATE 27th January 2019 

The Bureau of Industry and Security has posted both Annexes for the expansion of Section 232 Steel and Aluminum tariffs. 
 
Six subheadings for aluminum affected include types of wire and automobile stampings under 7614.10.50, 7614.90.20, 7614.90.40, 7614.90.50, 8708.10.30, and 8708.29.21. The annex reads the new rate will be the duty provided in the applicable subheading + 10%. 
 
Four subheadings for steel affected include nails, tacks and automobile stampings under subheadings 7317.00.30, 7317.00.55, 8708.10.30, and 8708.29.21. Note that subheading 7317.00.55 has certain statistical numbers that are not affected. The annex reads the new rate will be the duty provided in the applicable subheading + 25%. 
 
These additional tariffs are due to go into effect February 8, 2020.
 
The links to both Annexes to the Presidential Proclamation are listed below: 


For steel: https://www.bis.doc.gov/index.php/documents/section-232-investigations/2520-annex-ii-derivatives-of-steel-articles/file

 

For aluminum: https://www.bis.doc.gov/index.php/documents/section-232-investigations/2521-annex-i-derivatives-of-aluminum-articles/file
 


Section 232 - Trade Expansion Act - Tariff Update

On Friday, January 24, 2020, President Trump announced and signed a proclamation increasing Section 232 tariffs on derivative steel products by an additional 25 percent, while also increasing tariffs on derivative aluminum products by another 10 percent.

The increase expands to existing tariffs that had sat at 25 percent on steel and 10 percent on aluminum.

Countries exempted from additional tariffs on steel include:  Argentina, Australia, Brazil, Canada, Mexico and South Korea.

Countries exempted from added tariffs on aluminum products include: Argentina, Australia, Canada and Mexico.

The tariff increase will take place on February 8, 2020. Changes in the Harmonized Tariff Schedule will be announced in the Federal Register, once published.
Importers of steel and aluminum products should immediately review any tariff mitigation possibilities

The Trade advisory team at Crane Worldwide Logistics are here to help, please reach out if you need assistance. 


The full proclamation is available here.


What are Section 232 tariffs?

Section 232 of the Trade Expansion Act allows the President of the United States to impose tariffs if 'an article is being imported into the United States in such quantities or under such circumstances as to threaten or impair the national security'. Any tariff is based upon the recommendation of the United States Secretary of Commerce. This section of the Act had not been invoked since the creation of the World Trade Organization. President Trump invoked section 232 on March 8th 2018 to impose tariffs on steel and aluminum. 

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