On February 10, 2025, the Trump administration published a proclamation announcing reinstatement of the 25% tariff on all steel imports ("Steel Proclamation"). That same day, President Trump also issued a proclamation announcing the reinstatement and increase of tariffs on aluminum imports to 25% ("Aluminum Proclamation"). The tariffs will be imposed on steel and aluminum articles imported from all countries, and the Proclamations announced tariffs on certain steel and aluminum product derivatives. The reinstated tariffs become effective on March 12, 2025.
Authority
The Trump administration is implementing the tariffs under the authority of Section 232 of the Trade Expansion Act of 1962 ("Section 232"). Section 232 authorizes the imposition of tariffs when certain articles are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.
What Countries Are Subject to the Steel and Aluminum Tariffs?
The reinstated tariffs are universally applicable to steel and aluminum imports from all countries. The Proclamations do not mention exclusions for any particular country. In fact, the tariffs are explicitly being reimposed on countries that previously received exclusions from the tariffs or negotiated alternative arrangements in lieu of the tariffs.
The Proclamations provide reasoning behind the new order, and the Steel Proclamation specifically explains why the tariffs will apply to countries that previously negotiated exclusions or other arrangements: "The arrangements with these countries have failed to provide effective, long-term alternative means to address these countries' contribution to the threatened impairment to the national security by restraining steel articles exports to the United States from each of them, limiting transshipment and surges and distorted pricing, and discouraging excess steel capacity and excess steel production."
What Products Are Subject to the Steel and Aluminum Tariffs?
The full product scope will be further defined in subsequent Federal Register notices. However, the tariffs will apply to imports of steel and aluminum from all countries, including certain derivative products.
A Fact Sheet published by the Trump administration on February 11, 2025, provides that the tariffs will expand "to include key downstream products." The Proclamations also require the Secretary of Commerce to establish a process for including additional derivative steel and aluminum articles to the list of products covered. This process will include a method for domestic producers of steel, aluminum, and derivatives of steel and aluminum to request inclusion of specific steel and aluminum derivatives.
The Proclamations further revoke the product exclusion processes from the previous imposition of steel and aluminum tariffs and provide, "Granted product exclusions shall remain effective until their expiration date or until excluded product volume is imported, whichever occurs first."
Potential Impact
With the tariffs, the Trump administration aims to strengthen domestic production of steel and aluminum. However, the tariffs will likely also negatively impact various industries that consume imported steel and aluminum inputs, including construction, oil and gas, automotive manufacturing, and drinks packaging, among others.
The Proclamations references U.S. Customs and Border Protection ("CBP") prioritization of reviews of imported steel and aluminum articles to prevent evasion. For example, the Steel Proclamation provides:
CBP shall prioritize reviews of the classification of imported steel articles and derivative steel articles and, in the event that it discovers misclassification resulting in non-payment of the ad valorem duties proclaimed herein, it shall assess monetary penalties in the maximum amount permitted by law and shall not consider any evidence of mitigating factors in its determination. In addition, CBP shall promptly notify the Secretary regarding evidence of any efforts to evade payment of the ad valorem duties proclaimed herein through processing or alteration of steel articles or derivative steel articles prior to importation.
The Aluminum Proclamation includes similar language. We expect these new CBP priorities to lead to delays in the importation of steel and aluminum products and to increased enforcement and larger penalties against companies involved in the evasion of duties.
This is a developing situation, and the U.S. government will be publishing more specific information regarding implementation in the coming days. If you have any questions about the new tariffs on steel and aluminum articles, and how these developments impact your imports, please do not hesitate to reach out to the Team at Torres Trade Law.
If you wish to review your supply chain and import activity to determine if you can legally lower duties for imports into the United States, please visit our article, Preparing for Customs Duties under President Trump and Strategies for Consideration.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
