WHAT’S THE LATEST

On February 18, the Federal Register published two notices with instructions for implementing additional tariffs on steel and aluminum imports to the U.S. under Section 232 of the Trade Expansion Act of 1962. These changes will go into effect on March 12, 2025.

WHAT WE KNOW

  • Aluminum tariffs will rise from 10% to 25%.
  • Additional steel (Chapter 73) and aluminum (Chapter 76) products, along with dozens of codes in other chapters, are now included in the Harmonized Tariff Schedule.
  • Previous steel and aluminum agreements with Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, Ukraine and the U.A.E will be terminated.
  • Previously granted exclusions will no longer be valid as of March 12, 2025.
  • Steel and aluminum derivative products listed in the annexes of each notice will be subject to duties based on their steel and/or aluminum content.
    • These duties will take effect once the Secretary of Commerce establishes a process for their assessment, within 90 days of Federal Register Notice.
  • Duty drawbacks will not be available for these tariffs.

Additionally, the executive orders instruct U.S. Customs & Border Protection to prioritize reviewing the classification and valuation of steel and aluminum products, as well as “assess monetary penalties in the maximum amount permitted by law” without consideration of mitigating factors.

WHAT’S NEXT?

Companies should continue to evaluate mitigation strategies as the industry awaits further guidance. SEKO advises importers to review Annex I of Proclamation 10896 (Steel) and Annex 1 of Proclamation 10895 (Aluminum) to determine if their classifications are within scope of these orders.

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.