EFC Update on Proposed Tariffs on Steel and Aluminum

February 21, 2025

An update on proposed tariffs on steel and aluminum can be found below. NEMA has provided this information to their members as well. If the US government proceeds with these plans, the tariffs are scheduled to take effect on March 12, 2025.

View the White House Fact Sheet and the Presidential Proclamations adjusting Section 232 tariffs on steel and aluminum, signed on February 10, 2025.

The Proclamations cite a decline in U.S. capacity utilization below 80 percent, increased imports from countries covered by “alternative arrangements,” and product exclusions covering a “significant volume” of imports where the domestic industry has the “potential to produce many excluded products” as a basis for these changes. Annexes listing the affected steel and aluminum products will be published in the Federal Register.

Steel and Aluminum:

• 25% tariff will apply to imports of steel from all countries as of March 12, 2025
• 25% tariff will apply to imports of aluminum from all countries as of March 12, 2025 (was previously 10%)
• Alternative arrangements (tariff-rate quotas) are terminated as of March 12, 2025
• The temporary exemptions for Ukraine are terminated as of March 12, 2025
• 50% tariff on steel from Turkey remains in effect.

Derivative Steel and Aluminum Articles:

• 25% tariff also will apply to “derivative steel articles” listed in an annex (to be published in the Federal Register)
• 25% tariff also will apply to “derivative aluminum articles” listed in an annex (to be published in the Federal Register)
• Derivative steel articles processed in another country from steel articles “melted and poured” in the United States are not subject to the 25% tariff
• Derivative aluminum articles processed in another country from aluminum articles “smelted and cast” in the United States are not subject to the 25% tariff
• The Commerce Department has 90 days to set up a process to identify more derivative products that should be covered.

Exclusions:

• The product exclusion process is terminated immediately
• Products granted exclusions are in effect until they expire, hit their cap volume, or March 12, 2025, whichever is first
• Products may be admitted into foreign trade zones (FTZs) but will be subject to duties when brought into the United States
• Duty drawback is not available (as has been the practice for 232 duties all along)

Currently there is no indication there will be a product-specific exclusion process or country exemptions.

On Tuesday, the Federal Register published an annex with impacted HS codes. View the Federal Register proclamation with the annex included (Federal Register: Adjusting Imports of Aluminum Into the United States).

EFC launched a member survey in early February to better understand and quantify the impact of the proposed 25% tariff on imports from Canada to the US. Member insights are critical in shaping our response and advocacy efforts and we will be sharing the results of the survey in next week’s InfoElectro newsletter.

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