“U.S. Content” Clarified for USMCA Preferences Under Section 232 Metal Tariffs

The Bureau of Industry and Security has provided the guidance below to U.S. Customs and Border Protection regarding the assessment of U.S. content for products of Canada and Mexico that qualify for preferential treatment under the U.S.–Mexico–Canada Agreement with respect to Section 232 tariffs on steel, aluminum, and copper.

Earlier this year President Trump issued a proclamation making various amendments to these tariffs, which are effective through Dec. 31, 2027. Among other things, that proclamation provides that for products of Canada and Mexico that qualify for preferential tariff treatment under the USMCA, a 25 percent tariff will apply only to the non-U.S. content of the product.

BIS has now advised CBP that “U.S. content” in this context means:

– the value of the product attributable to parts wholly obtained, entirely produced, or substantially transformed in the U.S.; and

– to the extent not otherwise accounted for above, the value of the product attributable to steel that was melted and poured in the U.S., aluminum that was smelted and cast in the U.S., and/or copper that was smelted and cast in the U.S.

This guidance is effective with respect to products entered or withdrawn from warehouse for consumption on or after 12:01 a.m. Eastern Time on Oct. 14.