Background

The Section 232 additional tariffs of 25 percent on steel and 10 percent on aluminum are being extended to derivative products that have seen a surge in imports.

For more information, please contact trade attorney Kristen Smith at (202) 730-4965.

The Section 232 tariffs currently apply to (1) steel articles classified under HTSUS subheadings 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, , and (2) the following aluminum articles: (a) unwrought aluminum (heading 7601); (b) aluminum bars, rods, and profiles (heading 7604); (c) aluminum wire (heading 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (headings 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fittings (headings 7608 and 7609); and (f) aluminum castings and forgings (HTSUS 7616.99.5160 and 7616.99.5170).

A Jan. 24 presidential proclamation states that while imports of these goods have declined since the tariffs were imposed, imports of certain derivatives of these articles have significantly increased. The Department of Commerce believes this increase is part of an effort to circumvent the tariffs.

In response, President Trump is expanding the additional tariffs to the following derivative goods.

- nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of HTSUS heading 8305) and similar articles, of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper) that are (a) suitable for use in powder-actuated hand tools, threaded (described in subheading 7317.00.30) or (b) of one piece construction, whether or not made of round wire (described in HTSUS 7317.00.5503, 7317.00.5505, 7317.00.5507, 7317.00.5560, 7317.00.5580 or 7317.00.6560 only and not in other statistical reporting numbers of subheadings 7317.00.55 and 7317.00.65

- bumper stampings of steel or aluminum, the foregoing comprising parts and accessories of the motor vehicles of headings 8701 to 8705 (described in HTSUS 8708.10.30)

- body stampings of steel or aluminum, for tractors suitable for agricultural use (described in HTSUS 8708.29.21)

- stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and with steel core, not electrically insulated, fitted with fittings or made up into articles (described in HTSUS 7614.10.50)

stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated, that (a) comprise electrical conductors and are not fitted with fittings or made up into articles (described in HTSUS 7614.90.20), (b) do not comprise electrical conductors and are not fitted with fittings or made up into articles (described in HTSUS 7614.90.40), or (c) are fitted with fittings or made up into articles (described in HTSUS 7614.90.50)

Derivative steel products will be covered by new HTSUS subheading 9903.80.03 and derivative aluminum products will be covered by new HTSUS subheading 9903.85.03.

The expanded tariffs will be effective for affected goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EST on Feb. 8.

However, derivative aluminum articles from Argentina, Australia, Canada, and Mexico, and derivative steel articles from Argentina, Australia, Brazil, Canada, Mexico, and South Korea, will be exempted from these tariffs.

In addition, the DOC has been authorized to establish a process for requesting exclusions from these expanded tariffs (1) for any derivative article determined not to be produced in the U.S. in a sufficient and reasonably available amount or of a satisfactory quality, and (2) based on specific national security considerations.  Exclusion requests may only be made by directly affected parties located in the U.S.  Any exclusions granted will be retroactive to the date the request was accepted by the DOC.

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