Hello Customers, Colleagues, and Friends…
We would like to update you on significant tariff changes impacting steel, aluminum, and other trade-related goods, along with strategies to mitigate potential costs and ensure proper compliance.
New Tariffs on Steel and Aluminum Imports
Effective March 12, 2025, the U.S. government has increased tariffs on steel and aluminum imports:
- 25% tariff on steel and 25% tariff on aluminum products, including certain derivatives, will apply to imports from all countries, including those previously exempt (e.g., Argentina, Brazil, EU, Mexico, and others).
- Derivative products made from steel and aluminum will also be subject to these tariffs, unless they meet specific requirements for U.S. production. For example, steel articles derived from steel melted and poured in the U.S., or aluminum products smelted and cast in the U.S., may be exempt. Importers must report the country of origin for the steel and aluminum content of these derivative products. There has been no guidance from CBP on how to report percentages of value on derivative products. (SEE BELOW LINKS OUTLINING APPLICABLE HTS SUBJECT OT ADDITIONAL SECTION 232 TARIFFS)
- The new reporting and compliance measures will require more detailed classification and documentation for imports to ensure proper tariff assessment. CBP has stated there is heightened compliance around classification and valuation of products.
Impact of Retaliatory Tariffs
In retaliation for U.S. tariffs, Canada and the European Union have imposed additional tariffs on U.S. goods. These retaliatory tariffs are part of ongoing trade negotiations, so importers should be prepared for potential adjustments, both on retalitory tariffs and import tariffs.
- Canada has placed retalitory tariffs on US Goods. The volume will be expanded when Canada anounces second round.
- The EU is considering similar measures, targeting up to €22.5 billion worth of U.S. imports.
What this means for you
- Importers should review their steel and alumium importing activities and review the below link to identify if any of your imports fall on the derivatives list.
- Importers should communicate closely with their suppliers to confirm country of smelt and pour of Alum. & Steel on derivative commodities. These should be certified by supplier and listed on invoice.
- Exporters should review applicable dutry rates in exporting countries. If you need assitance navigating reciprocal tariffs, our export department can assist.
- Stay Informed: As legislation and tariffs evolve, keep an eye on updates from trade advisory services and regulatory bodies like CBP to ensure compliance.
Please continue to plan accordingly for your import, export, and domestic transportation needs.
Sincerely, Your friends at Krenz and Hannan International
SOURCES
https://content.govdelivery.com/bulletins/gd/USDHSCBP-3d66df0?wgt_ref=USDHSCBP_WIDGET_2
https://content.govdelivery.com/bulletins/gd/USDHSCBP-3d66da7?wgt_ref=USDHSCBP_WIDGET_2
https://krenzhannanintl.com/calculator/
Below links outline which HTS are subject to section 232 additional tariffs