On his first day in office, President Trump rolled out a sprawling set of directives to the heads of numerous government agencies charged with shaping U.S. trade policy. While stopping short of enacting new tariffs, the Presidential Memorandum defining an “America First Trade Policy” lays the investigative groundwork for potentially sweeping changes to tariffs and
Section 232 Tariffs
Goods Subject to Tariffs May Lose 321 De Minimis Treatment in Proposed Rulemaking
On January 21, 2025, U.S. Customs and Border Protection (CBP) published a notice of proposed rulemaking that would make goods subject to tariffs under Sections 232, 201, and 301 ineligible for the de minimis duty exemption under the Section 321 Program, which allows imported shipments not exceeding $800 to enter the United States duty-free. To…
Section 232: History and the Exclusion Process
Introduction
Section 232 of the Trade Expansion Act of 1962 serves as a critical U.S. trade policy tool designed to safeguard national security by regulating imports. The provision grants the President the authority to impose tariffs or other trade restrictions on imports that threaten national security. The underlying rationale is that certain imports could undermine…
New Section 232 Exclusion Proposed Rules Will Force Additional Burden of Proof on Importers and Domestic Producers
On August 28, 2023, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) proposed new rules to streamline and strengthen the Section 232 Exclusions Process for Steel and Aluminum imports. The proposed rules will build on the five existing interim final rules and respond to public comments received by BIS since February 2022. BIS…
GAO Report on Section 232 Exclusions Signals Increased Enforcement for Steel and Aluminum Importers
On July 20, 2023, the U.S. Government Accountability Office (“GAO”) released a report titled, Steel and Aluminum Tariffs: Agencies Should Ensure Section 232 Exclusion Requests are Needed and Duties are Paid. Following an investigation analyzing import entry data from March 2018 through September 2021, GAO published a 66-page report about the usage and administration…
CBP Issues Guidance Requiring Reporting of Smelt and Cast Country of Origin for Aluminum Products to Enforce 200% Tariff on Russian Aluminum
Customs and Border Protection (CBP) released new guidance following the announcement of new 200% tariffs on Russian aluminum. CBP’s guidance outlines new reporting requirements for all imports of aluminum and aluminum derivative products, regardless of the country of origin.
The new reporting requirements follow the issuance of Presidential Proclamation 10522. Under Proclamation 10522, any…
Section 232 – Not All Quotas Are Created Equal
Since March 2018, when President Trump exercised his authority under Section 232 of the Trade Expansion Act of 1962 to impose a 25 percent tariff on steel imports and a 10 percent import on aluminum, trade partners of the United States have made efforts to receive exemptions from the steel and aluminum tariffs. In several…
U.S. and Japan Reach Tariff-Rate Quota (TRQ) Agreement to Replace Section 232 Tariffs
On February 7, 2022, the United States and Japan issued a joint statement announcing a 232 tariff agreement allowing historically-based sustainable volumes of Japanese steel products to enter the U.S. market without tariffs.
An overview of the actions as provided by the Department of Commerce is provided below:
The United States will replace the existing…
United States Trade Representative (USTR) Announces Replacement of Section 232 Tariffs on EU Imports with a Tariff-Rate Quota
On October 31, 2021, the Office of the United States Trade Representative (USTR) announced that the United States would be replacing the existing 25% tariff on EU steel and 10% tariff on EU aluminum under Section 232 with a tariff-rate quota (TRQ). As such, eligible products that are within the quota will be able to…
U.S. – EU Aim to Resolve Excess Capacity Issues and Section 232 Tariffs by the End of the Year
On June 15, 2021, the U.S. and EU announced a commitment to address steel and aluminum excess capacity issues including section 232 tariffs and retaliatory measures by the end of the year. This announcement follows the May 17th, 2021 statement from the European Commission Executive Vice President’s outlining the EU’s decision to temporarily…