WHAT’S THE LATEST

On June 3, President Trump signed a proclamation modifying previous executive orders which significantly increases tariffs on steel and aluminum imports to the U.S. under Section 232 of the Trade Expansion Act of 1962.

Effective June 4 at 12:01 a.m. ET, tariffs have doubled from 25% to 50%. This increase excludes products of the United Kingdom, to which a 25% duty rate will apply. 

WHAT WE KNOW

This order makes several fundamental changes to how Section 232 duties on steel/aluminum are calculated:

  • Steel/aluminum derivative articles classified in Chapter 73 or 76 are subject to Section 232 steel/aluminum duties. The applicable duty is assessed only on the value of the steel/aluminum content.
  • The non-steel/aluminum content of an item within scope of Section 232 tariffs on steel/aluminum derivatives is subject to reciprocal tariffs. 
  • These changes are complete reversals of previous policy conveyed in CBP CSMS Messages and FAQs.

In addition, CBP has provided updated guidance pertaining to the stacking of tariffs imposed by various executive orders under CSMS # 65236574. CBP has also issued CSMS # 65236374 and CSMS # 65236645, which provide additional clarity to the trade on how the changes will be implemented. 

WHAT'S NEXT?

Companies should continue to evaluate mitigation strategies as the industry awaits further guidance. SEKO advises importers to review Annex I of Proclamation 10896 (steel) and Annex 1 of Proclamation 10895 (aluminum) to determine if their classifications are within scope of these orders.

Utilization of HTS databases for imported products is critical to ensure clearance data elements are updated timely and accurately in a rapidly changing regulatory environment. As importers identify special provisions or strategies to mitigate tariffs, importers should work with their Customs Broker to ensure documents are completed in a compliant manner. 

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.