JF MORAN’S CEO BETTY ROBSON BREAKS DOWN THE BASICS OF TARIFFS AND WHAT BUSINESSES CAN EXPECT
ALL STEEL AND ALUMINUM IMPORTS
Active as of March 12
Steel & Aluminum Imports: 25% Tariff
A 25% tariff will apply to all steel and aluminum products imported into the U.S., including specified derivative products. The White House has published the Federal Register Notices on Adjusting Imports of Steel and Aluminum into the United States identifying these derivatives. To see the full list of classification codes that our team has compiled, click here.
Exemptions for U.S. Melted & Poured Steel & Aluminum
If a derivative steel product is made in another country but is produced using steel that was melted and poured in the U.S., it will not be subject to additional duties if proper certification is provided to CBP.
Similarly, for aluminum, importers must provide CBP documentation detailing the aluminum content used in derivative aluminum products.
CBP will issue further guidance on required documentation.
Previously Exempt Countries
All previous Steel and Aluminum agreements with trading partners including Argentina, Australia, Brazil, Canada, EU, Japan, Mexico, S. Korea, Ukraine, the U.A.E., or the UK are cancelled effective March 12. For Steel products and derivatives from Turkey a 50% tariff will be applied.
Enforcement & Penalties
The 25% tariff applies in addition to other duties, such as antidumping or Section 301 duties on Chinese imports.
No duty drawback will be allowed on steel and aluminum tariffs.
CBP will prioritize classification reviews for steel and aluminum products and strictly enforce penalties for misclassification.
Steel Products: Penalties will be issued without consideration for mitigating factors, increasing the risk of legal challenges.
Aluminum Products: CBP will impose the maximum legal monetary penalties for any misclassification intended to avoid tariffs.
All import of Canadian steel and aluminum will receive an additional 25% Tariff, bringing the Levy to 50%.
Canada:
Active as of April 2
Imports From Canada: 25% Tariff
Despite earlier negotiations and a one-month delay, the U.S. government has decided to proceed with the 25% tariffs on Canadian imports starting March 4. This decision aims to address concerns over trade imbalances and inadequate measures against illegal drug trafficking, particularly fentanyl. Canadian officials have expressed disappointment and are considering retaliatory measures, including imposing tariffs on U.S. goods.
This tariff will be in addition to the previously mentioned steel and aluminum tariffs.
This tariff will be in addition to tariffs placed on April 2, more information on these tariffs to be released soon.
Mexico:
Active as of April 2
Imports From Mexico: 25% Tariff
Despite earlier negotiations and a one-month delay, the U.S. government has decided to proceed with the 25% tariffs on imports from Mexico starting March 4. The U.S. administration cites insufficient progress in curbing illegal immigration and drug trafficking as reasons for implementing these tariffs. Mexican authorities have criticized the move and are exploring options for retaliation, which could further strain the bilateral relationship.
This tariff will be in addition to the previously mentioned steel and aluminum tariffs.
This tariff will be in addition to tariffs placed on April 2, more information on these tariffs to be released soon.
China
Active as of February 4
Imports From China: 20% Tariff
As of February 4, all U.S. imports from China faced an additional 10% tariff, applied on top of existing duties. In early March, the Trump administration increased these tariffs by another 10%, citing China's failure to curb the flow of fentanyl to U.S. borders. These new tariffs are in addition to pre-existing trade duties and sector-specific tariffs, including those on steel and aluminum.
This tariff will be in addition to the previously mentioned steel and aluminum tariffs.
This tariff will be in addition to tariffs placed on April 2, more information on these tariffs to be released soon.
ADDITIONAL RESOURCES:
Leverage Foreign Trade Zones (FTZs) to Mitigate Tariff Costs
With the latest tariff increases impacting global trade, Foreign Trade Zones (FTZs) offer a strategic way to reduce duty costs and minimize trade disruptions. FTZs allow businesses to defer or reduce certain duties and tariffs, providing enhanced flexibility in supply chain operations.
Is an FTZ the right fit for your business? Connect with your JF Moran representative today to explore how FTZs can support your tariff mitigation and cost-saving strategy. Let us optimize your trade approach—get started today!
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