Tariff Talk

At midnight, tariffs on steel and aluminum officially increased to 50%. The UK remains exempt from the hike, with rates paused at 25% until July 9—the end of the 90-day reprieve on reciprocal tariff increases. This exemption allows time to assess the UK’s compliance with the U.S.-UK Economic Prosperity Agreement signed on May 8. In support of these changes, U.S. Customs released updated tariff codes overnight.

The update also clarifies the hierarchy for handling auto/auto part and steel and aluminum imports. For any steel or aluminum import, the importer must first determine whether it qualifies under the auto tariffs. If it does, additional tariffs under steel and IEEPA orders for Mexico and Canada do not apply. If it does not qualify as an auto or auto part, the Section 232 steel and aluminum tariffs are enforced. “Applicable” in this case refers to paying the tariff, not avoiding it due to lack of metal content. The order also confirms that if an article contains both steel and aluminum, it will be subject to both tariffs.

This announcement lacked the lead time that the industry has come to expect for updates on duties and taxes. While recent tariff changes in 2025 have come on shorter timelines, this overnight update is the most abrupt yet—raising concern about how the White House intends to communicate future trade decisions, and how businesses should forecast and plan accordingly.

OCEANAIR continues to monitor the ever-changing tariff landscape. For the latest updates, follow us on social media or contact us at compliance@oceanair.net.