New presidential proclamation doubles tariffs on steel and aluminum imports

On June 3, President Trump issued a proclamation doubling tariffs on imports of steel and aluminum articles and derivative steel and aluminum articles from 25% to 50%, effective at 12:01 a.m. EDT on June 4. This action, taken under Section 232 of the Trade Expansion Act, among other legal authorities, aims to address national security concerns by limiting imports in critical industries.

The higher duties under the new proclamation apply to products covered by the original Section 232 orders, including a wide range of flat-rolled, semi-finished, and fabricated products. The proclamation reverses the previous tariff stacking executive order so importers must pay the 50% steel and aluminum tariffs, rather than the 25% tariffs on Canada and Mexico imposed under the fentanyl emergency proclamations. It also eliminates an exemption from reciprocal tariffs for goods subject to Section 232 steel and aluminum tariffs. The proclamation clarifies that the reciprocal tariffs will apply to the value of non-steel and non-aluminum content within an import. Notably, the Court of International Trade recently found the reciprocal tariffs to be unlawful – a decision that the Trump administration has appealed to the Federal Circuit. The Federal Circuit has allowed the Trump administration to continue collection of reciprocal tariffs while the case is on appeal.

The United Kingdom is temporarily exempt from the increased tariffs due to the U.S.-UK Economic Prosperity Deal. However, this exemption is subject to review and may change after June 9. Other previously negotiated tariff-rate quota (“TRQs”) arrangements, such as those with the European Union, Japan, and South Korea, are not modified by this change. However, the proclamation signals the Administration’s intent to review whether those TRQs continue to serve U.S. national security interests.

The proclamation also states that imports of covered articles admitted into a United States Foreign Trade Zone (“FTZs”) under the “privileged foreign status” on or after the effective date will be subject to the new 50% duty rate when entered into the United States for consumption. This ensures the applicable duty rate (50%) is assessed when the goods are withdrawn from the FTZ for U.S. consumption. For goods admitted into an FTZ before June 4, the 50% tariff may still apply depending on when the goods are entered for consumption.

Next steps

The Secretary of Commerce, in coordination with the U.S. Trade Representative and U.S. Customs and Border Protection, is directed to implement and enforce the provisions of this proclamation. The Secretary is also authorized to recommend further adjustments based on changing circumstances.

Companies importing steel and aluminum products should anticipate increased costs due to the higher tariffs. Businesses that are affected by these products may need to reassess their supply chains and sourcing strategies to mitigate the impact of the tariff increase. Importers must similarly ensure accurate reporting of steel and aluminum content in their products to comply with the new regulation and avoid additional penalties.

Clark Hill’s International Trade team is available to help importers determine the impact of the new tariffs on their business and assist with compliance strategies. If you have any questions regarding this alert, please contact Mark Ludwikowski (mludwikowski@clarkhill.com; 202-640-6680), Kevin Williams (kwilliams@clarkhill.com; 312-985-5907), Aristeo Lopez (alopez@clarkhill.com; 202-552-2366), Kelsey Christensen (kchristensen@clarkhill.com; 202-230-9889), Sally Alghazali (salghazali@clarkhill.com; 202-572-8676), or other members of Clark Hill’s international trade business unit.

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