Update on Steel and Aluminum Tariffs
Starting March 12, 2025, a 25% tariff will apply to all steel, aluminum, and specified derivative products imported into the United States.
An expanded list of additional derivative products will also be subject to these tariffs. However, their implementation will depend on the Secretary of Commerce confirming that an efficient system is in place to process and collect the tariffs. Once the Annexes specifying these products are released, details will be updated.
Tariff Application for Steel and Aluminum Derivatives
Steel: If a derivative steel product is listed in the Annex but is not classified under Chapter 73 of the Harmonized Tariff Schedule of the U.S. (HTSUS), the additional tariff will apply only to the steel content of the item.
Aluminum: If a derivative aluminum product is included in the Annex but is not classified under Chapter 76 of the HTSUS, the 25% duty will apply solely to the aluminum content.
Russian-Origin Aluminum: Any aluminum or derivative aluminum product containing primary aluminum of Russian origin will be subject to a 200% tariff. Primary aluminum is defined as newly produced metal derived from alumina using the electrolytic Hall-Héroult process.
Exemptions Based on U.S. Steel & Aluminum Content
Steel: If a derivative steel product manufactured in another country is made from steel that was melted and poured in the United States, it will be exempt from the tariff upon proper certification to U.S. Customs and Border Protection (CBP).
Aluminum: Importers must provide CBP with necessary documentation to verify the aluminum content used in manufacturing derivative aluminum products. CBP will release guidance on the required documentation as soon as possible.
Trade Agreements and Exemptions
All previous steel and aluminum trade agreements with Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, Ukraine, the UAE, and the UK will be terminated as of March 12, 2025.
Turkey: Steel products and derivatives imported from Turkey will be subject to a 50% tariff.
Exclusions and Exemptions:
No new exclusions or exemptions will be issued as of February 11, 2025.
Any generally approved exclusions will expire on March 12, 2025.
However, if an importer has an existing exclusion, it will remain valid until its specified expiration date or until the excluded volume is exhausted, whichever occurs first.
Future Expansion of Tariff Coverage
The Commerce Department has been directed to establish a process within 90 days to identify additional steel and aluminum products for tariff inclusion. Domestic producers or industry associations may petition for products to be added to the Annex, and Commerce will make a determination within 60 days of the request.
Customs Enforcement and Compliance Measures
No Duty Drawback: Refunds or duty drawbacks will not be allowed on these tariffs.
CBP Enforcement on Classification:
CBP will prioritize reviewing steel and derivative product classifications and will issue penalties without consideration of mitigating factors if products are found to be misclassified to avoid tariffs.
For aluminum products, CBP will impose maximum monetary penalties permitted by law for misclassification to evade duties.
Foreign Trade Zones: Steel, aluminum, and derivative products admitted into a foreign trade zone (FTZ) on or after 12:01 AM on March 12, 2025, must be classified as privileged foreign status (unless eligible for domestic status) and will be subject to tariffs upon entry for U.S. consumption.
To discuss your cargo details or solutions on particular lanes, please contact your South East World Wide (Chicago), Ltd. Sales Representative.