The U.S. Government will extend the scope of Section 232 tariffs, which impose an additional 25 percent tariff on some steel articles and an additional 10 percent tariff on some aluminum articles. This expansion will now reach certain finished products.
Products that will be affected by this expansion are derivative products of articles currently subject to Section 232 steel and aluminum products where (1) aluminum or steel represents 2/3 or more of the total material cost, (2) import volumes increased each year since June, 2018 in comparison to import volumes during the 2 preceding years, and (3) import volumes exceeded four percent average increase in total U.S. goods imports since June, 2018.
The Department of Commerce published annexes describing the additional steel and aluminum derivative articles that will be subject to the 10 percent and 25 percent, which can be accessed here. The annexes cover the following:
Aluminum derivative articles:
stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and with steel core, not electrically insulated; the foregoing fitted with fittings or made up into articles (described in subheading 7614.10.50);
stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing comprising electrical conductors, not fitted with fittings or made up into articles (described in subheading 7614.90.20);
stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing not comprising electrical conductors, not fitted with fittings or made up into articles (described in subheading 7614.90.40);
stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing fitted with fittings or made up into articles (described in subheading 7614.90.50);
bumper stampings of aluminum, the foregoing comprising parts and accessories of the motor vehicles of headings 8701 to 8705 (described in subheading 8708.10.30); and
body stampings of aluminum, for tractors suitable for agricultural use (described in subheading 8708.29.21).”
Steel derivative articles:
nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper), suitable for use in powder-actuated handtools, threaded (described in subheading 7317.00.30);
nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper), of one piece construction, whether or not made of round wire; the foregoing described in statistical reporting numbers 7317.00.5503, 7317.00.5505, 7317.00.5507, 7317.00.5560, 7317.00.5580 or 7317.00.6560 only and not in other statistical reporting numbers of subheadings 7317.00.55 and 7317.00.65;
bumper stampings of steel, the foregoing comprising parts and accessories of the motor vehicles of headings 8701 to 8705 (described in subheading 8708.10.30); and
body stampings of steel, for tractors suitable for agricultural use (described in subheading 8708.29.21).
The expanded tariffs will affect goods entered or withdrawn from a warehouse for consumption on or after 12:01 am EST on February 8, 2020. These steel derivative tariffs will apply to goods from all countries except Argentina, Australia, Brazil, Canada, Mexico and South Korea. The aluminum derivative tariffs will affect goods from all countries except Argentina, Australia, Canada and Mexico.
The Department of Commerce has been authorized to establish a process for requesting exclusions from this expanded scope of tariffs, but details on an exclusion request process aren’t yet available.
If you have questions concerning this expansion of Section 232 tariffs, please contact a trade professional here.