Tuesday, January 28, 2020
INCREASED TARIFFS ON DERIVATIVE STEEL AND ALUMINUM PRODUCTS FROM SOME COUNTRIES
The US Secretary of Commerce reports that although aluminum and steel articles have declined since the imposition of the tariffs and quotas, imports of certain derivatives of aluminum articles and imports of certain derivatives of steel articles have increased since the imposition of the tariffs and quotas. In accordance with this report, a proclamation was signed on January 24, 2020 increasing tariffs on derivative steel products by an additional 25 percent and on derivative aluminum products by an additional 10 percent. The expanded tariffs will be effective for affected goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EST on Feb. 8.
Countries exempted from the additional tariffs on steel products are Argentina, Australia, Brazil, Canada, Mexico and South Korea. Countries exempted from the additional tariffs on derivative aluminum articles are Argentina, Australia, Canada, and Mexico.
It has been determined that an article is “derivative” of an aluminum article or steel article if all of the following conditions are present:
(a) the aluminum article or steel article represents, on average, two-thirds or more of the total cost of materials of the derivative article;
(b) import volumes of such derivative article increased year-to-year since June 1, 2018, following the imposition of the tariffs in comparison to import volumes of such derivative article during the 2 preceding years; and
(c) import volumes of such derivative article following the imposition of the tariffs exceeded the 4 percent average increase in the total volume of goods imported into the United States during the same period since June 1, 2018.
Goods meeting this criteria include the following:
- steel nails, tacks, drawing pins, corrugated nails and staples
- aluminum stranded wire, cables, plaited bands, and the like (including slings and similar derivative articles)
- bumper and body stampings of aluminum and steel for motor vehicles and tractors
Read the entire Proclamation on Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles into the United States here.