Details Regarding New Aluminum Tariffs

Feb. 11, 2025
By: Lawrence M. Friedman

On February 10 the Trump Administration issued two proclamations modifying the 232 treatment of certain imports of steel, aluminum, and derivatives of steel and aluminum. While the details of treatment and coverage of some derivative goods is not yet known, below is a summary of what we do know specifically with respect to aluminum:

1. All imports of aluminum articles and derivative aluminum articles are subject to Section 232. The order increases the rate from 10% to 25%.
2. The effective date is 12:01 a.m. Eastern March 12, 2025.
3. As of March 12, “all imports of aluminum articles and derivative aluminum article will be subject to a 25% duty.”
4. When officially published in the Federal Register, there will be an Annex listing additional articles that will be treated as derivative aluminum articles subject to the 25% duty. The effective date for that will be the day the Commerce Department certifies that systems are in place to collect the duties (“Commerce certification date”).
5. Derivative articles made with aluminum smelted and cast in the United States are exempt. CBP will implement a process for reporting and documenting this exemption.
6. The 200% tariff on products with any amount of Russian primary aluminum continues in effect.
7. The Commerce Department will immediately terminate the process of accepting and considering exclusion requests. Existing Aluminum product exclusions will terminate when they expire, or the volume is imported. General Approved Exclusions will be terminated March 12, 2025.
8. The Secretary of Commerce must establish a process to add to the list of derivative aluminum products, including based on requests from domestic producers and associations.
9. For derivative products not classified in HTSUS Chapter 76, the duty is applicable on the Commerce certification date.
10. No drawback is permitted on these duties.
11. After the date on which Commerce certifies the systems are in place, goods must be entered into a foreign trade zone must be in privileged foreign status and will be subject to duty upon entry for consumption.
12. When enforcing the collection of these duties, Customs is directed to assess monetary penalties in the maximum amount permitted by law.

As companies seek to manage their supply chains in light of these tariffs, classification, valuation, and compliance will become very significant. Attorneys at Barnes, Richardson  Colburn, LLP have decades of experience addressing these issues. Do not hesitate to contact us if you have any questions.