Importers of Steel and Aluminum Get Relief from Section 232 Tariffs
If you are an importer of steel or aluminum products, you are probably well aware of the additional Section 232 tariffs that were imposed on imports of Steel (25%) and Aluminum (10%) products starting in 2018. As of just a few weeks ago, CBP Trade Statistics report that over $9 Billion in Steel tariffs and $2.7 Billion in Aluminum tariffs have been collected since the Section 232 action was imposed. However, on October 31, 2021, the U.S. and the EU reached an agreement on steel and aluminum tariffs on EU goods and the retaliatory tariffs imposed by the EU. With the agreement, the U.S. is amending the Section 232 action by replacing tariffs with Tariff Rate Quotas (TRQ) effective January 1, 2022.
The U.S. Trade Representative (USTR) announcement makes the following adjustments to imports of Steel and Aluminum from the EU:
- Effective January 1, 2022, the Section 232 tariffs will no longer be assessed on imports from the EU but will be entered subject to the related TRQ:
- The Steel TRQ is set at 3.3 MMT under 54 product categories. A breakdown of the categories is noted in Annex 1 to the announcement.
- The Aluminum TRQ is set at 18 thousand metric tons (TMT) for unwrought aluminum under two product categories and 366 TMT for semi-finished (wrought) aluminum under 14 product categories. A breakdown of the product categories is noted in Annex 2 to the announcement.
- Entries of steel and aluminum products above the TRQ levels will be subject to the relevant Section 232 duty.
- Section 232 Exclusions will not be counted as part of the annual TRQ.
- Current granted Exclusions will be extended to December 31, 2023, without the need to reapply.
- Derivative Products will not be subject to the Section 232 tariffs.
Section 232 of the Trade Expansion Act of 1962 was imposed by the Trump Administration as a result of an investigation into the effect of imports of steel and aluminum mill product on the national security of the United States. The TRQs for imports from the EU are similar to those in place for South Korea, Argentina, and Brazil for steel. The U.S. is also negotiating with Japan regarding a similar agreement to remove Section 232 tariffs on Japanese steel and aluminum.
Should you have any additional questions about Section 301 and the comment period please contact M.E. Dey’s Compliance Director, Margaret Lange.