Washington, D.C. (Aug 14, 2024): To keep steel and aluminum from China, and other countries under sanctions, out of the U.S. market, President Biden issued dual proclamations to discourage the transshipment of goods with steel and aluminum from China, Russia, Belarus, and Iran from reaching the U.S. market via Mexico. The new tariff rates went into effect on July 10 and imports already in free-trade zones are not exempt from the new tariffs.
Under the new proclamations, a 25 percent tariff would be collected on any steel or steel derivative products imported from Mexico under Section 232 tariffs if the steel is not poured or melted in a USMCA country (U.S., Mexico, or Canada). In addition, products containing aluminum or aluminum derivatives are hit with new Section 232 tariffs of approximately 10 percent if the primary smelt, secondary smelt, or most recent cast was performed in China, Belarus, or Iran. A 200 percent tariff would be applied to aluminum imports if smelts and recasts were performed in Russia.
Steel, aluminum, and derivative products not subject to the new tariffs will retain their exempt status with stricter reporting requirements. Importers must include a ‘Certificate of Analysis’ to receive a tariff exemption for steel and aluminum. Customs & Border Protection (CBP) now requires additional information on the source of smelting and pouring of steel or casting of aluminum to verify tariff-exempt status.
SFIA supports U.S. sanctions on steel and aluminum from bad actor countries but prefers a non-tariff solution to close the Mexico loophole.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].