232 Tariffs on Derivative Steel and Aluminum Imports

Effective February 8, 2020, the U.S. will impose tariffs on derivative steel and aluminum imports.

Pursuant to a January 24, 2020 Executive Order, the current steel and aluminum 232 tariffs have been expanded to certain derivative goods. U.S. Customs & Border Protection Guidance has provided documention regarding the goods covered by the additional duties.

Derivative steel products will be covered by new HTSUS subheading 9903.80.03 and derivative aluminum products will be covered by new HTSUS subheading 9903.85.03.

The additional tariffs will be effective for affected goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EST on Feb. 8.

Derivative aluminum articles from Argentina, Australia, Canada, and Mexico, and derivative steel articles from Argentina, Australia, Brazil, Canada, Mexico, and South Korea, will be exempted from these tariffs.

The Bureau of Industry and Security will be establishing a process for requesting exclusions from these expanded tariffs (1) for any derivative article determined not to be produced in the U.S. in a sufficient and reasonably available amount or of a satisfactory quality, and (2) based on specific national security considerations. Exclusion requests may only be made by directly affected parties located in the U.S. Any exclusions granted will be retroactive to the date the request was accepted by the DOC.

Here is the list of steel derivative products subject to the new tariffs.

A lawsuit has already been filed seeking a restraining order against the expansion of the Section 232 steel and aluminum tariffs to derivative products and claiming that Section 232 of the Trade Expansion Act of 1962 is unconstitutional. Many legal experts are commenting that the action in expanding the steel and aluminum tariffs to derivative products does not comply with the requirements of Section 232 and thus is illegal.

Here is the list of the aluminum derivative products subject to the new tariffs.

The Peterson Institute for International Economics (PIEE) did a great policy analysis of the steel and aluminum derivatives tariffs. It is also provides data on its coverage and countries impacted.