| THOMPSON COBURN TRADE ALERT – IMPORTS | |
| HEADLINE | Executive Order Imposing Additional Duties on Aluminum Products |
| DATE | February 10 2025 |
| AGENCY | Department of Homeland Security, Customs and Border Protection (CBP); Trump Administration |
| EFFECTIVE DATE | For changes to prior aluminum proclamations: 12 March 2025 12:01 AM EST For additional changes: effective upon public notice by the Sec. Commerce. |
| BACKGROUND | President Trump signed an executive order on February 10 imposing new 25% tariffs on aluminum and certain downstream aluminum products. In his previous administration, President Trump used Section 232 to impose 10% tariffs on a narrower subset of aluminum articles, respectively, and several agreements were reached with several allied countries. However, these new actions (1) raise the tariff amount from 10% to 25%, (2) terminate the previous exceptions, and (3) supplement the previous aluminum tariff scope. |
| DETAILS | The actions will: — Remove previous Section 232 aluminum tariff exemption agreements for products of Argentina, Australia, Canada, Mexico, the European Union, and the United Kingdom, subjecting originating aluminum products in scope to the 25% duties. — Wind down individual product exclusions and the product exclusion process authorized by Proclamation 9704, Proclamation 9776, and Proclamation 9980. The granted product exclusions remain effective until they expire or reach the applicable imported product volume, whichever occurs first. — Expand tariffs to include additional derivative aluminum articles specified in Annex I (which was not published with the order), at a time to be specified later by publication in the Federal Register. The duties imposed by the E.O. are not available for duty drawback. Additional duties on derivative aluminum articles do not apply to such articles processed in another country from aluminum articles that were smelted and cast in the United States. Importers must document any information necessary to identify the aluminum content used in the manufacture of aluminum derivative articles imports. Duties Do Not Apply to Derivative Steel (Aluminum) Articles processed in another country from steel (or aluminum) articles that were melted (smelted) and poured (cast) in the United States. It is not yet clear how this clause will be interpreted with respect to Chapter 98 HTSUS classifications, and how it will be implemented for any situations where Chapter 98 may not be used. |
| BASIS | Section 232 of the of the Trade Expansion Act of 1962; 3 U.S.C. 301; 19 U.S.C. 2483 |
| HTS/ PRODUCTS | The aluminum and derivative aluminum products subject to the additional tariffs in Proclamation 9704 and Proclamation 9980. Additional derivative aluminum products in Annex I (not yet published) |
| COUNTRY | All |
| CITE | Federal Register :: Adjusting Imports of Aluminum Into the United States Federal Register :: Implementation of Duties on Aluminum Pursuant to Proclamation 10895 Adjusting Imports of Aluminum Into the United States |
Modification of Existing Section 232 Aluminum Tariffs
The actions cancel the following allowances for specific countries:
- Argentina, Australia (Proclamation 9758 with respect to imports of aluminum articles);
- Canada (Proclamation 9893, Proclamation 10106 with respect to imports of aluminum articles);
- Mexico (Proclamation 9893, Proclamation 10782 with respect to imports of aluminum and derivative aluminum articles);
- EU members (Proclamation 10327, Proclamation 10690 with respect to imports of aluminum articles); and
- United Kingdom (Proclamation 10405 with respect to imports of aluminum articles).
As a result, after 12:01 a.m. Eastern time on March 12, 2025, all imports of aluminum articles and derivative aluminum articles from these countries will become subject to the additional tariffs proclaimed in Proclamation 9705 and Proclamation 9980 at a rate of 25%, except for derivative aluminum articles processed in another country from aluminum articles that were smelted and cast in the United States.
Effective “immediately,” no more product exclusions may be considered or renewed, with previously granted product exclusions remaining in effect until they expire or until the applicable excluded product volume is imported, whichever occurs first.
The action also revokes the ability of the Secretary of Commerce to grant relief from the duties or quantitative restrictions, including the provisions of clause 3 of Proclamation 9704, clause 1 of Proclamation 9776, or clause 2 of Proclamation 9980.
Inclusion of Additional Aluminum Articles
The actions will apply an additional 25% tariff to all imports of derivative aluminum articles specified in Annex I (which was not published with the order).
- These products (yet to be identified) will be subject to the increased tariff as of the date that the Secretary of Commerce publishes a notification in the Federal Register.
- These additional duties do not apply to derivative aluminum articles processed in another country from aluminum articles that were smelted and cast in the United States.
- To the extent derivative aluminum articles identified in Annex I (not published) that are not in Chapter 76 of the HTSUS, the additional duties apply only to the aluminum content of the derivative article.
Importers must provide to U.S. Customs and Border Patrol (CBP) “any information necessary to identify the aluminum content used in the manufacture of aluminum derivative articles imports.”
Process for Including Additional Derivative Aluminum Articles within Scope
The order directs the Secretary of Commerce to establish a process for including additional derivative aluminum articles within the scope of the proclamation within 90 days. This process will involve a mechanism for domestic producers of an aluminum article or derivative aluminum article, or an industry association representing one or more such producers, to where the request additional products be included if such products “impair the national security or otherwise undermine the objectives” of the actions. The Secretary will have 60 days to issue a determination regarding whether to add the products to the scope.
Prioritization of Classification Reviews
The order also directs CBP to “prioritize reviews of the classification of imported aluminum articles and derivative aluminum articles” and to punish misclassification to “the maximum amount permitted by law and shall not consider any evidence of mitigating factors in its determination.”
CBP is further instructed to notify the Secretary of Commerce regarding “evidence of any efforts to evade payment of the … duties … through processing or alteration of aluminum articles or derivative aluminum articles prior to importation,” and such processed or altered aluminum articles shall be considered to be derivative aluminum articles. It is not entirely clear from the order, however, if this Commerce department “consideration” will be made ad hoc as applied to an individual importer or if it will inform additional actions by the Secretary via the process for including additional derivative aluminum articles to be published in the Federal Register.
Miscellaneous
Aluminum or derivative articles admitted to U.S. foreign trade zones on or after March 12 not eligible for domestic status will be entered under “privileged foreign status” subject upon entry for consumption to any added duties, as applicable.
Derivative aluminum or steel articles that are in a foreign trade zone in privileged status prior to the March 12, 2025 and withdrawn for consumption after March 12, 2025 will be subject to the rates of duties applicable under this proclamation.
Finally, the duties imposed by the E.O. are not available for duty drawback.