Commerce Sets Tariff Subheadings for Section 232 Steel and Aluminum Tariffs Beginning March 12
Tariffs on some of the new aluminum and steel derivatives listed in an annex to President Donald Trump’s proclamation expanding the Section 232 tariffs will take effect March 12, according to a pair of notices released by the Commerce Department.
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The notices also detail tariff subheadings to be used for the expanded Section 232 tariffs.
While the effective date remains uncertain for tariffs on the new steel and aluminum derivatives outside of chapters 73 and 76 of the tariff schedule -- 110 subheadings and 12 subheadings, respectively -- the notices say the 19 new subheadings for derivatives in Chapter 76 and the 157 new subheadings in Chapter 73 will face tariffs March 12 under new subheadings 9903.85.07 and 9903.81.90.
Tariffs on the new derivatives outside of chapters 73 and 76 will take effect “upon public notification of the Secretary of Commerce.” Those tariffs will apply only to the derivatives’ aluminum or steel content, respectively, and Commerce apparently has yet to determine that systems are in place to process and collect tariff revenue for such articles, as required by the original proclamation. Once the tariffs on these items do take effect, they will be filed under subheading 9903.85.08 for aluminum and 9903.81.91 for steel.
New subheading 9903.85.02 will be used for increased and expanded tariffs on aluminum, which are now set at 25% and will now also apply to Argentina, Australia, Canada, Mexico, the EU and the U.K., all of which previously had deals to avoid the tariffs.
Likewise, new subheading 9903.81.87 will be used for Section 232 tariffs on iron and steel, including for goods that were previously subject to Section 232 steel tariffs (except for those on derivatives), as well as newly subject goods from Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the U.K., Ukraine and the EU that are no longer exempt or eligible for quota.
New subheading 9903.85.04 will be used for the previously existing list of aluminum derivatives, and new subheading 9903.81.89 will be used for previously tariffed steel derivatives.
New subheadings 9903.81.88 and 9903.81.93 will apply the tariffs on steel and steel derivatives admitted to a foreign-trade zone prior to March 12 under privileged foreign status.
Newly tariffed derivatives that are exempt from the tariffs because their steel was melted and poured in the U.S., or their aluminum was smelted and cast in the U.S. will be classifiable in subheadings 9903.81.92 and 9903.85.09, respectively.
Previously existing tariff provisions for the steel and aluminum tariffs, including the use of subheadings 9903.85.01 and 9903.80.01, will continue until the new tariffs take effect on March 12, the notices said.