From 4 June, the United States has increased the tariff rate for imports of steel and aluminium and their derivative products, from 25 percent ad valorem to 50 percent ad valorem.
These new tariff rates apply only to the steel and aluminum contents of imported products, whereas the non-steel and non-aluminum contents of imported products will be subject to their corresponding tariffs.
Strict reporting of steel and aluminum content is required in import declarations, and non-compliance will be penalized.
However, a different treatment is provided for imports of steel and aluminum and their derivative articles from the United Kingdom, which maintain a 25% tariff due to the existing bilateral trade agreement between the US and the UK and the current negotiations for a broader trade deal.
This amendment is implemented under Section 232 of the Trade Expansion Act that allows for import restrictions to protect national security and US’s critical steel and aluminum industries. This mechanism is different from the reciprocal tariffs that are currently being appealed in the Court of International Trade.
The increased tariffs aim to benefit domestic steel and aluminum producers, but it is also expected to raise costs for US businesses that rely on imported steel and aluminum, potentially impacting other sectors like construction, plane manufacturing, and oil drilling or automotive industry.
Further information:
- Adjusting imports of aluminum and steel into the US
- Fact Sheet: President Trump increases tariffs on steel and aluminum
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