November 3, 2021
On October 31, 2021 the US and the EU announced an agreement had been reached to lift the 25 percent on imports of steel from the EU and 10 percent on imports of aluminum from the EU. In exchange, the EU will eliminate their retalitory tariffs on US products and will agree to limit the exports of steel and aluminum to the US.
The steel, in order to be eligible for tariff-free entry, must be “melted and poured” in the EU. Imports from the EU will be limited by a Tariff Rate Quota that allows for the duty free treatment of up to 3.3 million metric tons per year. Imports exceeding that quota will be subject to a 25 percent tariff.
The aluminum, in order to be eligible for tariff-free entry, must be produced entirely within the EU. To substantiate that claim, importers must provide a “Certificate of Analysis” as proof of EU origin. Tariff-free imports will be subject to a Tariff Rate Quota which will be capped at 18,000 metric tons for unwrought aluminum under 2 categories, and 366,000 metric tons of semi-finished (wrought) aluminum covered by 14 categories. Amounts exceeding these limits will be subject to a 10 percent tariff.
Crane Trade Services can assist you with questions regarding this matter. For assistance please contact CWTSConsulting@craneww.com.
Crane Worldwide logistics Trade Advisory team releases all the latest information on International Trade here
The Bureau of Industry and Security has posted both Annexes for the expansion of Section 232 Steel and Aluminum tariffs.
Six subheadings for aluminum affected include types of wire and automobile stampings under 7614.10.50, 7614.90.20, 7614.90.40, 7614.90.50, 8708.10.30, and 8708.29.21. The annex reads the new rate will be the duty provided in the applicable subheading + 10%.
Four subheadings for steel affected include nails, tacks and automobile stampings under subheadings 7317.00.30, 7317.00.55, 8708.10.30, and 8708.29.21. Note that subheading 7317.00.55 has certain statistical numbers that are not affected. The annex reads the new rate will be the duty provided in the applicable subheading + 25%.
These additional tariffs are due to go into effect February 8, 2020.
The links to both Annexes to the Presidential Proclamation are listed below:
For aluminum: https://www.bis.doc.gov/index.php/documents/section-232-investigations/2521-annex-i-derivatives-of-aluminum-articles/file
On Friday, January 24, 2020, President Trump announced and signed a proclamation increasing Section 232 tariffs on derivative steel products by an additional 25 percent, while also increasing tariffs on derivative aluminum products by another 10 percent.
The increase expands to existing tariffs that had sat at 25 percent on steel and 10 percent on aluminum.
Countries exempted from additional tariffs on steel include: Argentina, Australia, Brazil, Canada, Mexico and South Korea.
Countries exempted from added tariffs on aluminum products include: Argentina, Australia, Canada and Mexico.
The tariff increase will take place on February 8, 2020. Changes in the Harmonized Tariff Schedule will be announced in the Federal Register, once published.
Importers of steel and aluminum products should immediately review any tariff mitigation possibilities
The Trade advisory team at Crane Worldwide Logistics are here to help, please reach out if you need assistance.
Section 232 of the Trade Expansion Act allows the President of the United States to impose tariffs if 'an article is being imported into the United States in such quantities or under such circumstances as to threaten or impair the national security'. Any tariff is based upon the recommendation of the United States Secretary of Commerce. This section of the Act had not been invoked since the creation of the World Trade Organization. President Trump invoked section 232 on March 8th 2018 to impose tariffs on steel and aluminum.
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