Important Changes to Steel and Aluminum Imports into the United States

Tweet

Feb. 11, 2025
By: Frederic D. Van Arnam, Jr.

On February 10 the Trump Administration issued two proclamations modifying the 232 treatment of certain imports of steel, aluminum (fact sheet only at publication), 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:

1. The tariffs go into effect on March 12th.
2. All specially negotiated agreements that set up country-wide exclusions, absolute quotas or TRQ are terminated. This means that all steel and aluminum from South Korea, Argentina, Australia, Brazil, Canada, Mexico, the EU countries, Japan and the UK will be subject to the 25% duties. 
3. The product exclusion process is terminated immediately.  This includes any exclusions currently being considered, as well as new ones.  And this includes requests for renewals.  However, exclusions that are currently granted will be honored until their expiration date or until the product volume excluded is imported, whichever comes first.
4. The general approved exclusions (GAE) are terminated as of March 12th.
5. Additional “derivative products” are being added to the steel derivative products lists.  Those products and their tariff numbers will be published as annexes in the Federal Register when this executive order is published, which we expect will happen very shortly.  In other words, we don’t know yet which new steel products are being added now.  However, it was reported yesterday that a member of the White House press team said that fabricated structural steel and pre-stressed concrete strands are among the products that will be newly covered as derivative product.
6. The rate for steel derivatives will be 25%; however, the rate for existing aluminum derivatives remains at 10%.
7. New products being added to the steel derivatives list will be subject to the 25% duty effective on the day that Commerce, not CBP, certifies that systems are in place to collect the duty.
8. A process is being set up to allow for US companies to petition the government to add specific steel derivative products to the steel derivatives list subject to the 25% duty. 
9. No drawback on these duties.
10. New admissions of foreign steel, aluminum, or derivatives into foreign trade zones (“FTZ”) must be as privileged foreign status, subject to duty upon withdrawal.  Any product subject to duty under the Executive Order and which is already admitted into an FTZ prior to March 12th will also be subject to the increased duties when entered for consumption 
11. The EO sets out a paragraph warning importers of steel and derivative steel articles that if CBP discovers misclassification resulting in non-payment of these duties “it shall access monetary penalties in the maximum amount permitted by law and shall not consider any evidence of mitigating factors.” This also includes situations where CBP learns that steps are being taken abroad to process or alter steel/steel derivative products to avoid payment.

As companies seek to manage their supply chains in light of these tariffs, the circumstances discussed in paragraph 11 will likely 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.