Tariff Talk

The long-anticipated changes to steel and aluminum tariffs are now in motion, set to take effect at 12:01 AM on March 12, 2025. Current tariff rates and quotas are expiring to make way for a 25% tariff on steel, aluminum, and their derivative products. This marks an increase for several metal categories, particularly aluminum, which has been subject to a 10% tariff.

In response to Ontario’s announced 25% surcharge on electricity exports to the U.S., President Trump announced on social media that tariffs on Canadian steel and aluminum would increase to 50%. The planned increase was later withdrawn after Ontario suspended the electricity surcharge.

Steel and aluminum tariffs fall under Section 232 of the Trade Expansion Act of 1962, commonly known as “232s.” This provision grants the President authority to adjust imports if their quantity or circumstances threaten to impair national security. Steel and aluminum are considered critical to national security due to their role in infrastructure, machinery, vehicles, and weapons manufacturing.

All existing HTS codes subject to Section 232 tariffs will be covered under the new tariffs, along with additional classifications outlined in the proclamations. The proclamations also provide a process for adding more derivative products as identified by the Secretary of Commerce. Notably, these tariffs will not be eligible for drawback privileges and will be subject to revised de minimis treatment once adequate systems are established.

Additionally, the proclamations eliminate prior agreements with trading partners, including the European Union, Australia, Brazil, Japan, and South Korea. The updated tariffs apply broadly without the previous country-specific exemptions and quota arrangements.

A significant change in this release is the expansion of covered finished goods, affecting many importers. Newly affected items include nails, tacks, and staples for power tools, as well as bumper stampings, washers, miscellaneous machinery, and LED lights. The expanded list also includes flat-rolled products, bars, rods, tubes, pipes, and hollow profiles.

On the aluminum side, new additions cover electronic radio navigation items, certain refrigeration equipment, and specific sporting goods like fishing rods and tennis racquets.

As the new tariffs take effect, importers across various industries are raising concerns. OCEANAIR will continue to monitor developments and provide updates on any adjustments.