BACKGROUND
On March 8, 2018, in Proclamation 9705, Adjusting Imports of Steel into the United States, upon the completion of a Section 232 investigation, the United States determined that steel articles were being imported in such quantities that threaten to impair U.S. national security.
To adjust the volume of those steel articles coming into the U.S., we imposed a 25 percent ad valorem tariff on such articles imported from all countries except Canada and Mexico.
EXPANDED COORDINATION WITH THE EUROPEAN UNION
On December 27, 2021, recognizing that the member countries of the European Union (EU) have an important security relationship with the United States, the President determined that the necessary and appropriate means to address the threat to the national security posed by imports of steel articles from these countries was to continue the ongoing discussions and to exempt steel articles imports from these countries from the tariff.
The United States and the EU agreed to expand coordination involving trade remedies and Customs matters, monitor bilateral steel and aluminum trade, cooperate on addressing non-market excess capacity, and annually review their arrangement for alternative means and their ongoing cooperation.
In addition, the United States and the EU will seek to conclude, by October 31, 2023, negotiations on global steel and aluminum arrangements to restore market-oriented conditions and support the reduction of carbon intensity of steel and aluminum across modes of production.
The agreed upon measures will provide an effective, long-term alternative means to address any contribution by EU steel articles imports to the threatened impairment of the national security by…
- restraining steel articles imports to the United States from the EU;
- limiting transshipment;
- discouraging excess steel capacity and production; and
- strengthening the United States-EU partnership that will better enable future arrangements.
In light of these new coordinated efforts, the United States has determined that specified volumes of eligible steel article imports from the EU no longer threaten to impair national security and have decided to exclude them (up to a designated quota) from the tariff through December 31, 2023.
Under the new arrangement…
- steel articles that are melted and poured in the EU are eligible for in-quota treatment;
- steel articles from a member country of the EU imported under an exclusion will not count against the in-quota volume of the tariff-rate quota;
- all previously utilized exclusions granted for imported steel articles from the EU are renewed for a period of 2 years;
- the agreed-upon aggregate tariff-rate quota volume specified in the agreement between the United States and the EU is 3 million metric tons.
- any imports of steel articles from the EU that were admitted into a United States Foreign Trade Zone under “privileged foreign status” will be subject to the tariff-rate quota at the time of entry for consumptions, starting January 1, 2022.
Read the full White House Proclamation on Adjusting Imported of Steel into the United States
The White House also confirmed that the U.S. will maintain the current tariff level as it applies to other countries.
- 25 percent ad valorem rate of duty (9903.80.01)
- 50 percent ad valorem rate of duty (80.02 – Turkey)
COUNTRY-SPECIFIC EXCEPTIONS BY DATE
- March 23, 2018 – Argentina, Australia, Brazil, Canada, Mexico, South Korea, and the member countries of the European Union
- June 1, 2018 – Argentina, Australia, Brazil, and South Korea
- August 13, 2018 – Argentina, Australia, Brazil, South Korea, and Turkey
- May 20, 2019 – Argentina, Australia, Brazil, South Korea, and Turkey
- May 21, 2019 – Argentina, Australia, Brazil, Canada, Mexico, and South Korea
- NEW! January 1, 2022 through December 31, 2023 – Argentina, Australia, Brazil, Canada, Mexico, and South Korea, and members of the European Union
ALUMINUM & STEEL DERIVATIVES
Since February 8, 2020…
- All imports of derivative aluminum articles became subject to an additional 10 percent ad valorem rate of duty.
- Country-specific exceptions were granted for derivative aluminum articles from Argentina, Australia, Canada, and Mexico.
- All imports of derivative steel articles also became subject to an additional 25 percent ad valorem rate of duty.
- Country-specific exceptions were granted for derivative aluminum articles from Argentina, Australia, Brazil, Canada, Mexico, and South Korea.
Starting January 1, 2022…
- Country-specific exceptions for derivative aluminum articles are updated to Argentina, Australia, Canada, the member countries of the European Union and Mexico.
- Country-specific exceptions for derivative steel articles are updated to Argentina, Australia, Brazil, Canada, the member countries of the European Union, Mexico, and South Korea.
The White House will seek comments from the industry before updating and finalizing the formal exclusion filing process. Importers are welcome to apply for additional exclusions, as needed.
The United States will also establish a process to assist domestic steel and aluminum consumers in identifying suppliers, with negotiated arrangements from partner nations, that can provide the relevant product.
On a regular basis, the Department of Commerce will publish on its website the volume of steel articles imported under exclusions issued.
READ THE FULL WHITE HOUSE PROCLAMATION ON ADJUSTING IMPORTED OF STEEL INTO THE UNITED STATES
Stay up-to-date on freight news with Green’s Weekly Freight Market report by following us on Facebook, Twitter, and LinkedIn. For continuous updates, make sure to check out our website at greenworldwide.com.
