What are Section 232 tariffs on steel and aluminum?

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This post is in response to many queries we have received since last week’s announcement by President Trump of new tariffs effective March 23rd on aluminum and steel imports to the US under Section 232.

A Section 232 investigation is conducted under the authority of the Trade Expansion Act of 1962. The original purpose of a 232 investigation was to determine whether or not the import affects national security. The investigations are started based on an application from an interested party (usually a domestic producer), at the request of any department or agency head, or it may be self-initiated by the Secretary of Commerce.

The Secretary of Commerce then prepares a report to the President focusing on whether the importation of the article in question is in such quantities or under circumstances that threaten to impair national security. If the import impairs national security, the President can concur or not with the Secretary’s recommendations and take action to “adjust the imports of an article and its derivatives” or other non-trade related actions as deemed necessary.

The Secretary’s report to the President, prepared within 270 days of initiation, focuses on whether the importation of the article in question is in such quantities or under such circumstances as to threaten to impair the national security. The President can concur or not with the Secretary’s recommendations, and take action to “adjust the imports of an article and its derivatives” or other non-trade related actions as deemed necessary.

The last section 232 investigation occurred in 2001 regarding iron ore and semi-finished steel.

Last week, President Trump imposed a 25% global tariff on steel imports and a 10% global tariff on:

Aluminum imports, including the following products:
7601.10 Aluminum, Not Alloyed, Unwrought
7601.20 Aluminum Alloys, Unwrought
7604 Aluminum bars, rods and profiles
7605 Aluminum wire
7606 Aluminum plates, sheets and strip, over 0.2mm
7607 Aluminum foil (whether or not printed or backed with paper or other backing materials)
7608 Aluminum tubes and pipes
7609 Aluminum tube or pipe fittings
7616.99.5160 and 7616.99.5170 Aluminum castings

Steel products within the broad scope of the global tariffs:
Carbon and alloy flat products;
Carbon and alloy long products;
Carbon and alloy pipe and tube products;
Carbon and alloy semi-finished products;
Stainless steel products.

If you have any questions about whether or not your imports may be subject to these new duties after March 23rd, contact AD/CVD attorney David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

 

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