President Trump has signed two proclamations imposing 25 percent tariffs on imports of steel mill products and 10 percent tariffs on wrought and unwrought aluminum pursuant to his announcement on March 1, 2018. The president stated that these actions were necessary to address global overcapacity and unfair trade practices in the steel and aluminum industries and to protect national security. As past Trump and Trade updates have indicated, these tariffs are being implemented pursuant to Section 232 of the Trade Expansion Act of 1962, which provides the president with authority to adjust imports entering the United States in quantities or under circumstances that threaten to impair national security. The tariffs are scheduled to be implemented 15 days from today, on March 23, 2018.
Pursuant to the proclamation on steel, “steel articles” for which tariffs will be levied are defined at the Harmonized Tariff Schedule (HTS) six‑digit level as: 7206.10 through 7216.50; 7216.99 through 7301.10; 7302.10; 7302.40 through 7302.90; and 7304.10 through 7306.90, including any subsequent revisions to these HTS classifications.
Pursuant to the proclamation on aluminum, “aluminum articles” are defined in the Harmonized Tariff Schedule as: (a) unwrought aluminum (HTS 7601); (b) aluminum bars, rods and profiles (HTS 7604); (c) aluminum wire (HTS 7605); (d) aluminum plate, sheet, strip and foil (flat rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fitting (HTS 7608 and 7609); and (f) aluminum castings and forgings (HTS 7622.214.171.124 and 76126.96.36.199), including any subsequent revisions to these HTS classifications.
After insisting last week that the tariffs would cover steel and aluminum imports from all countries, President Trump scaled back that threat in the actual proclamations. Citing the need for “flexibility” and “cooperation” with allies and those who “treat us fairly on both trade and the military,” the president offered some restraint in implementing the tariffs. President Trump recognized that Canada and Mexico present a “special case” and will be excluded for now from the tariffs, indicating that his administration will continue ongoing discussions with those countries to address concerns (i.e., NAFTA negotiations). The president stated that he “welcomes any country with which we have a security relationship to discuss alternative ways to address our concerns, including our concerns about global excess capacity.” His administration will provide appropriate avenues, via negotiations with the U.S. Trade Representative, for potentially modifying or removing a tariff under certain conditions for individual countries.
The White House also announced that there will be a mechanism, via the Department of Commerce, for U.S. parties to apply for exclusion of specific products based on demand that is unmet by domestic production or on specific national security considerations. The proclamations make clear that such relief will be provided only after a request for exclusion is made “by a directly affected party located in the United States.” Exclusion request procedures are scheduled to be issued by March 18, 2018.