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On 8 March, President Trump signed two proclamations – one on steel imports and one on aluminum imports
As expected, the president is imposing, as from 23 March 2018, an additional 25% duty on steel, and an additional 10% duty on aluminum, imported from all countries except Canada and Mexico. The proclamations foresee the possibility of exclusions for particular steel and aluminum product imports, and contemplate further discussions with U.S. allies regarding possible country exemptions. Affected users of imported steel and aluminum products may want to consider the utility and viability of seeking product exclusions for their imports.
Meanwhile, a number of U.S. trading partners have raised concerns regarding the proposed tariffs, and have mooted the possibility of safeguard measures that could affect imports of steel and aluminum into their markets as well as potential retaliatory measures against the United States
Provisions Applicable to Both Steel and Aluminum Duties
Canada/Mexico exemptions: Imports from Canada and Mexico are exempted from the additional duties for now; the proclamation describes the special relationship the United States has with these countries and concludes that steel and aluminum imports from these countries should be exempted, but includes the qualifier “at least at this time”; this exemption may be tied to progress in NAFTA renegotiations and could be withdrawn by the president with little notice; also, the president makes clear his intention to exempt articles produced in Canada or Mexico, not to exempt articles transshipped through Canada or Mexico (e.g., one cannot avoid the additional U.S. duty by shipping steel or aluminum produced in China through Canada).
Possible country exemptions: Countries with which the United States has “a security relationship” (e.g., allies, like the EU, Australia, Japan and Korea) are encouraged to discuss with the Administration “alternative ways to address the threatened impairment of the national security” presented by imports from those countries; this could possibly lead to a series of “voluntary-restraint-type” arrangements being negotiated where exporting countries agree to limit exports to certain levels to avoid the additional duties.
Product exclusions: The proclamations foresee a petition-based, product exclusion process run by the Department of Commerce (with input from other agencies); the standard for exclusion will be whether the article (i) is produced in the United States “in a sufficient and reasonably available amount or of a satisfactory quality or (ii) is subject to specific national security considerations; petitions need to be filed by “a directly affected party located in the United States” (i.e., foreign suppliers do not qualify); Commerce is to issue formal procedures for this process by 18 March.
Duration: The duties, which begin on 23 March 2018, are to remain in effect until “expressly reduced, modified, or terminated”.
As expected, the president is imposing, as from 23 March 2018, an additional 25% duty on steel, and an additional 10% duty on aluminum, imported from all countries except Canada and Mexico. The proclamations foresee the possibility of exclusions for particular steel and aluminum product imports, and contemplate further discussions with U.S. allies regarding possible country exemptions. Affected users of imported steel and aluminum products may want to consider the utility and viability of seeking product exclusions for their imports.
Meanwhile, a number of U.S. trading partners have raised concerns regarding the proposed tariffs, and have mooted the possibility of safeguard measures that could affect imports of steel and aluminum into their markets as well as potential retaliatory measures against the United States
Provisions Applicable to Both Steel and Aluminum Duties
Canada/Mexico exemptions: Imports from Canada and Mexico are exempted from the additional duties for now; the proclamation describes the special relationship the United States has with these countries and concludes that steel and aluminum imports from these countries should be exempted, but includes the qualifier “at least at this time”; this exemption may be tied to progress in NAFTA renegotiations and could be withdrawn by the president with little notice; also, the president makes clear his intention to exempt articles produced in Canada or Mexico, not to exempt articles transshipped through Canada or Mexico (e.g., one cannot avoid the additional U.S. duty by shipping steel or aluminum produced in China through Canada).
Possible country exemptions: Countries with which the United States has “a security relationship” (e.g., allies, like the EU, Australia, Japan and Korea) are encouraged to discuss with the Administration “alternative ways to address the threatened impairment of the national security” presented by imports from those countries; this could possibly lead to a series of “voluntary-restraint-type” arrangements being negotiated where exporting countries agree to limit exports to certain levels to avoid the additional duties.
Product exclusions: The proclamations foresee a petition-based, product exclusion process run by the Department of Commerce (with input from other agencies); the standard for exclusion will be whether the article (i) is produced in the United States “in a sufficient and reasonably available amount or of a satisfactory quality or (ii) is subject to specific national security considerations; petitions need to be filed by “a directly affected party located in the United States” (i.e., foreign suppliers do not qualify); Commerce is to issue formal procedures for this process by 18 March.
Duration: The duties, which begin on 23 March 2018, are to remain in effect until “expressly reduced, modified, or terminated”.
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