Tuesday, December 3, 2019
Section 232 Tariffs on Steel and Aluminum from Argentina and Brazil
On March 23, 2018 two Presidential Proclamations imposing additional tariffs on steel and aluminum imports were signed creating a 25% increase on steel and a 10% increase on aluminum with exemptions for certain countries. On June 1, 2018 it was announced that steel from Australia, Argentina, and Brazil would be exempted from the 25% tariff and that aluminum from all countries except Australia and Argentina would be subject to a 10% duty. An agreement had been reached with Brazil on an exemption of steel, but not for aluminum. It was also announced that Canada, Mexico and the EU would no longer be exempted from these Section 232 tariffs.
Yesterday, the President tweeted that the exemptions for steel from Brazil and Argentina would be revoked and the Section 232 tariffs would be restored effective immediately. Citing the continued devaluation of Brazilian and Argentinean currencies as the reason for this reinstatement, it is to be noted that USTR has not released an official statement at this time nor has it been posted in the Federal Register. FHK will send a follow up trade alert as more details become available.