Washington, D.C. (August 20, 2025)- Effective August 18, 2025, 407 new categories of goods entering the United States became subject to a 50 percent ad valorem duty rate (the "Derivative Tariffs"). The list of different types of goods subject to the Derivative Tariffs is staggering—according to the Bureau of Industry and Security, Derivative Tariffs will be imposed on goods as diverse as "wind turbines and their parts and components, mobile cranes, bulldozers and other heavy equipment, railcars, furniture, compressors and pumps, and hundreds of other products."
The Derivative Tariffs were issued pursuant to section 232 of the Trade Expansion Act of 1962 ("Section 232"), following a recent Presidential Proclamation setting the rate of steel and aluminum duties at 50 percent. To read Lewis Brisbois's prior Client Alerts about the Section 232 steel and aluminum tariffs, see "President Trump Announces New Steel Tariffs" and "President Trump Implements Steel and Aluminum Tariffs."
The Derivative Tariffs only apply to steel and aluminum content within the applicable goods—non-steel and non-aluminum components would be subject to the reciprocal tariffs President initially imposed on April 2, 2025 (i.e., "Liberation Day") under the International Emergency Economic Powers Act of 1977 ("IEEPA").
The imposition of different tariffs, at different rates, for different components of the same goods has understandably led to confusion for U.S. businesses. To compound the confusion, U.S. businesses are faced with complex questions of when the Derivative Tariffs took effect with respect to goods in various forms of transit.
At the same time, the Liberation Day IEEPA tariffs are the subject of numerous federal court challenges. To read a recent Lewis Brisbois client alert on the IEEPA tariff litigation, see "Recent Updates to Trump Tariff Appeal." If the injunction against IEEPA tariffs is re-imposed and upheld, the likely outcome will be that the Section 232 tariffs will remain in place so that only the steel and aluminum contents of imported goods will be affected.
Key Takeaways
Companies importing many different types of products containing aluminum or steel will see increased tariffs. Importers can expect difficulties with import compliance (especially considering the differing tariff rates for product component types), disruption of supply chains, and complications in contract negotiation and performance.
Lewis Brisbois's attorneys are actively engaged in the wide range of legal issues in this area and are advising clients on managing legal and business risk as events continue to develop at an accelerated pace. For more information, contact the author or editors of this alert.Visit our Ukraine Conflict, International Trade, Export, Import and Investment Controls & National Security Practice page for additional alerts in this area.
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.
