Hello Customers, Colleagues, and Friends,
We want to bring your attention to two major tariff developments announced by the White House that will significantly impact the cost of imports into the United States. Effective in August 1st , new 50% tariffs will apply to certain copper products and most Brazilian-origin imports. These actions are being implemented under separate authorities: Section 232 for copper and IEEPA for Brazil.
Section 232 Copper Tariffs – Effective August 1
Under a new Presidential Proclamation, the U.S. will impose a 50% ad valorem tariff on a broad range of semi-finished and derivative copper products imported from all countries. This action was taken under Section 232 of the Trade Expansion Act of 1962 due to national security concerns related to over-reliance on foreign copper inputs.
Tariff Scope:
- Applies to: Semi-finished copper goods, including wire, rods, tubes, bars, sheet, and derivative items such as electrical connectors and fittings.
- Excludes: Copper ore, cathodes, anodes, refined copper, and scrap.
- Tariffs are calculated based only on the copper content in the product. (It is assumed this will be reported similarly to Steel and Aluminum Tariffs)
- If an item is also subject to 232 Auto/Auto Parts tariffs, the copper duty will not apply (auto tariff takes priority).
IEEPA Brazil Tariffs – Effective ~August 6
The U.S. will impose a 40% IEEPA tariff on nearly all goods imported from Brazil. Combined with the existing 10% baseline tariff, Brazilian-origin imports will now face 50% duties. Key exemptions include aircraft parts, energy products, and orange juice.
Tariff Scope:
- Broadly applies to imports of goods from Brazil, with limited exclusions.
- Key exemptions include strategic imports such as aircraft parts, energy-related products, and orange juice.
- Will apply to both industrial and consumer goods unless otherwise exempted.
Further updates expected. We will continue to monitor developments and provide timely updates as additional information becomes available. Please reach out to K&H if you have any questions regarding the recent tariff changes.
Sincerely, Your friends at Krenz and Hannan International