Hello Customers, Colleagues, and Friends…
We are writing to provide an update on the significant tariff changes that were recently implemented by President Trump, specifically focusing on updates regarding steel & aluminum tariffs and the automotive tariffs (SECTION 232) + the IN TRANSIT EXEMPTION on recent IEEPA tariffs. These changes may impact your current and upcoming shipments, and it is important to stay informed about the updated details.
Steel and Aluminum Tariffs – Derivative Products
Effective March 12, 2025, the U.S. government has expanded the steel and aluminum tariffs by adding two new commodities to the derivative products list. This change applies to steel and aluminum products that were previously exempt from these tariffs.
The following updates apply:
- The steel and aluminum tariffs (25%) will now include derivatives of steel and aluminum, including certain parts and materials that were not previously subject to tariffs.
- The two new commodities added to the derivative list include steel and aluminum fasteners and aluminum plates. These products will now be subject to the same 25% tariff unless they meet specific requirements for U.S. production (e.g., steel that is melted and poured in the U.S., or aluminum that is smelted and cast in the U.S.).
Importers are required to report the country of origin for the steel and aluminum content in these derivative products. Please communicate with your suppliers to ensure countries of origin for the steel/aluminum are being listed on commercial documentation.
Automotive Tariffs – New Regulations
Effective May 3, 2025, the U.S. government will implement a 25% tariff on a broad range of automotive imports, including vehicles and auto parts. This measure aims to address national security concerns related to the importation of automobiles and certain automobile parts.
Key Changes:
Expanded Coverage: The tariff will encompass nearly 150 categories of auto parts, such as engines, transmissions, lithium-ion batteries, tires, shock absorbers, spark plug wires, brake hoses, and automotive computers. Notably, automotive computers are categorized under a broad tariff code that also includes consumer electronics like laptops and desktop computers.
Implementation Dates:
- April 3, 2025: A 25% tariff will be applied to automobiles.
- May 3, 2025: A 25% tariff will be applied to automobile parts.
IN-TRANSIT Exemption – IEEPA Tariffs
- Cargo that departed origin before April 5th are not subject to the additional tariffs
- Cargo departing between April 5th – April 8th are subject to 10% reciprocal tariff
- Cargo departing April 9th and after will be subject to the reciprocal tariff listed on Annex I
- All countries not listed in Annex I will continue to be subject to 10% reciprocal tariff
Additional Notes:
- Overlap with Other Tariffs: These automotive tariffs are separate from and additional to the 10% universal tariff on all imports, which takes effect on April 5, 2025. The automotive tariffs will not be combined with the universal tariff; they are distinct measures.
- Potential for Further Expansion: The list of affected auto parts may be expanded. The Commerce Department will consider new requests from domestic manufacturers over the next 90 days.
If you have questions or need assistance with navigating these tariff changes, please do not hesitate to contact us.
Sincerely, Your friends at Krenz and Hannan International
SOURCES
https://public-inspection.federalregister.gov/2025-05884.pdf
https://public-inspection.federalregister.gov/2025-05930.pdf
https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-I.pdf