Tariff Talk

During a speech to Pennsylvania steelworkers this past Friday, President Trump announced that tariffs on foreign steel and aluminum would double from 25% to 50%, effective June 4. However, as of now, there have been no formal proclamations, executive orders, Federal Register notices, or U.S. Customs guidance providing details—leaving the trade community with little time to prepare for the June 4 implementation.

Key questions remain unanswered, particularly regarding the interpretation of the term “effective” and whether certain countries or existing exclusions will be impacted. Will the increased tariffs apply globally, or will they exclude trade partners currently in negotiation, such as the EU and UK? Will the increase target all steel and aluminum products or be limited to raw materials?

These steel and aluminum tariffs fall under Section 232, which differs from the Section 201 tariffs recently halted by the Court of International Trade (CIT). Although the ruling is now under appeal, the CIT determined that the President lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose Section 201 tariffs. The Trade Act of 1974 allows such action only if the International Trade Commission (ITC) finds that a surge in imports is causing serious economic harm—something the court ruled was not sufficiently demonstrated in this case.

Meanwhile, the U.S. Trade Representative (USTR) has extended 164 Section 301 tariff exclusions until August 31. These exclusions, originally set to expire on May 31, cover specifically defined articles across sectors such as medical, high-tech, solar, and energy, and have already been extended twice to provide ongoing relief.

OCEANAIR is closely monitoring developments. If you have any questions, please contact our Compliance team at compliance@oceanair.net.