Tariff Talk

This week began with a reminder that the tariff environment remains highly active, as the Commerce Department officially opened the window for requests to add additional items to those already facing 50% tariffs on steel and aluminum. This process is not for exclusions from Section 232 tariffs, but rather for parties negatively impacted by foreign manufacturing of steel or aluminum articles to submit their case for a product’s HTS to be charged.

This aligns with President Trump’s proclamations on “Adjusting Imports of Aluminum / Steel into the United States.” The two-week request period opened on September 15 and closed on September 29, with additional periods scheduled for January and May. The May request period resulted in new additions to the tariff list in August, including packaging for certain chemicals such as paints and hair dyes. BIS emphasized that these are inclusion requests only and must be submitted via email to the Defense Industrial Base Programs at DIBPrograms@bis.doc.gov.

Guidance has also been issued for the Japan-U.S. Trade Agreement, which introduces a 15% duty and reciprocal capping similar to what was enacted with the European Union, but with new HTS numbers. The rate is retroactive to August 7, requiring importers to file post-entry corrections to secure refunds for tariffs paid over the past month.

Unique to this agreement are carve-outs on steel and aluminum tariffs for items used in civil aircraft and automobiles, while other goods from Japan remain subject to the 50% tariffs. Payment of the Section 232 tariff excludes the importer from the 15% reciprocal. Certain civil aircraft items will qualify for exclusions, being subject only to reciprocals. Automobiles and parts are subject to a capping mechanism between general duties and Section 232 tariffs—a first in the 2025 tariff landscape. An automobile or part with a duty rate of 15% or higher will be excluded from the Section 232 tariff, while those with a lower rate will be rounded up to 15%.