| THOMPSON COBURN TRADE ALERT – IMPORTS | |
| HEADLINE | Executive Order Imposing Additional Duties on Steel Products |
| DATE | February 10 2025 |
| AGENCY | Department of Homeland Security, Customs and Border Protection (CBP); Trump Administration |
| EFFECTIVE DATE | For changes to prior steel proclamations: March 12 2025 12:01 AM EST For additional changes: effective upon public notice by the Sec. Commerce. |
| BACKGROUND | President Trump signed an executive order February 10 imposing new 25% tariffs on steel and certain downstream steel products. In his previous administration, President Trump used Section 232 to impose 25% tariffs on a narrower subset of steel articles, respectively, and several agreements were reached with several allied countries. However, these new actions terminate these exceptions and supplement the previous steel tariff measures. |
| DETAILS | The actions will: • Remove previous Section 232 steel tariff exemption agreements for products of Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom, subjecting originating steel products in scope to the 25% duties. • Wind down individual product exclusions and the product exclusion process authorized by Proclamation 9705, Proclamation 9777, 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 steel 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 steel articles do not apply to such articles processed in another country from steel articles that were melted and poured in the United States. Importers must document any information necessary to identify the steel content used in the manufacture of steel derivative articles imports. |
| 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 steel and derivative steel products subject to the additional tariffs in Proclamation 9705 and Proclamation 9980. Additional derivative steel products in Annex I (Now published in Proclamation 10896) |
| COUNTRY | All |
| CITE | Adjusting Imports of Steel into The United States – The White House Federal Register :: Adjusting Imports of Steel Into the United States Federal Register :: Implementation of Duties on Steel Pursuant to Proclamation 10896 Adjusting Imports of Steel Into the United States |
Modification of Existing Section 232 Steel Tariffs
The actions cancel the following allowances for specific countries:
- South Korea (Proclamation 9740 with respect to imports of steel articles);
- Argentina, Australia, and Brazil (Proclamation 9759 with respect to imports of steel articles);
- Brazil (Proclamation 10064 with respect to imports of steel articles);
- Canada and Mexico (Proclamation 9894 with respect to imports of steel articles);
- Mexico (Proclamation 10783 with respect to imports of steel articles);
- EU members (Proclamation 10328 and Proclamation 10691 with respect to imports of steel articles and derivative steel articles);
- Japan (Proclamation 10356 with respect to imports of steel articles and derivative steel articles);
- United Kingdom (Proclamation 10406 with respect to imports of steel articles and derivative steel articles);
- Ukraine (Proclamation 10403, Proclamation 10588, and Proclamation 10771 with respect to steel articles and derivative steel articles).
- Argentina, Australia, Brazil, Canada, Mexico, South Korea, and EU member countries (provisions of clause 1 of Proclamation 9740 as applicable to imports of steel articles or derivative steel articles).
- Argentina, Australia, Canada, Mexico, and South Korea (provisions of clause 1 of Proclamation 9980 as applicable to imports of derivative steel articles).
As a result, after 12:01 a.m. Eastern time on March 12, 2025, all imports of steel articles and derivative steel articles from these countries will become subject to the additional tariffs proclaimed in Proclamation 9705 and Proclamation 9980 except for derivative steel articles processed in another country from steel articles that were melted and poured 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 9705, clause 1 of Proclamation 9777, and clause 2 of Proclamation 9980.
Inclusion of Additional Steel Articles
The actions will apply an additional 25% tariff to all imports of derivative steel 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 steel articles processed in another country from steel articles that were melted and poured in the United States.
- To the extent derivative steel articles identified in Annex I (not published) are not in Chapter 73 of the HTSUS, the additional duties apply only to the steel content of the derivative steel article.
Importers must provide to U.S. Customs and Border Patrol (CBP) “any information necessary to identify the steel content used in the manufacture of steel derivative articles imports.”
Process for Including Additional Derivative Steel Articles within Scope
The order directs the Secretary of Commerce to establish a process for including additional derivative steel articles within the scope of the proclamation within 90 days. This process will involve a mechanism for domestic producers of a steel article or derivative steel article, or an industry association representing one or more such producers, to request that additional derivative 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 steel articles and derivative steel 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 steel articles or derivative steel articles prior to importation,” and such processed or altered steel articles shall be considered to be derivative steel 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 steel articles to be published in the Federal Register.
Miscellaneous
Steel or derivative articles admitted to U.S. foreign trade zones on or after March 12 that are not eligible for domestic status will be entered under “privileged foreign status” and are subject upon entry for consumption to any added duties, as applicable.
Finally, the duties imposed by the E.O. are not available for duty drawback.