By the TradeFlex Team of Consultants and Experts
The recent U.S. presidential proclamations on steel and aluminum imports have significantly impacted the manufacturing industry and the global supply chain. These measures, which include imposing tariffs of 25% on steel and 10% to 25% on aluminum, aim to reinforce national security and protect domestic production. However, they also present new challenges for importers and manufacturers relying on these materials.
Key Changes and Their Scope
Elimination of Exemptions and Alternative Agreements: As of March 12, 2025, the U.S. will reinstate 25% tariffs on steel and derivative imports from Argentina, Australia, Brazil, Canada, the European Union, Japan, Mexico, South Korea, and the United Kingdom.
Increase in Aluminum Tariffs: The tariff on aluminum and its derivatives will rise from 10% to 25%, primarily affecting importers from Argentina, Australia, Canada, Mexico, the EU, and the UK.
Restrictions Based on Material Origin: Additional sanctions will be imposed on products made with steel or aluminum originating from China or Russia, even if processed in other countries before export to the U.S.
End of Product Exclusions: The tariff exemption process for previously critical industrial products will be eliminated, increasing import costs.
Steel Derivatives List Published
The White House has released its annex of steel derivative items that will be subject to Section 232 tariffs once U.S. Customs and Border Protection (CBP) is ready to collect tariff revenue on those items. There are 155 derivative items in Chapter 73 which will face 25% tariffs, unless they are from Turkey. An additional dozen items in Chapters 84 or 94 will only owe duties on the steel content in them.
The items covered in these chapters include:
- Bulldozer blades
- Parts of escalators and elevators
- Backhoe and front-loader attachments
- Plows
- Steel shelving
- Modular steel building units
- Brass lighting fixtures
- Other lighting fixtures
Importers of steel derivative articles shall provide U.S. Customs and Border Protection (CBP) with any information necessary to identify the steel content used in the manufacture of these imports. CBP will implement these requirements as soon as practicable.
Public notification will be provided before the tariffs are due on the derivative items.
Impact on Industry and International Trade
Higher Costs for Manufacturing and Construction: Companies relying on imported steel and aluminum will face increased production costs, potentially leading to higher consumer prices.
Supply Chain Reconfiguration: Importers and manufacturers may seek alternative suppliers in countries not subject to these tariffs or increase investments in local production.
Trade Tensions and Diplomatic Repercussions: These measures could lead to trade retaliation from affected countries, potentially resulting in new tariff barriers and disputes at the WTO.
Opportunities for Domestic Production: In the medium term, the U.S. steel and aluminum industry could benefit from increased demand and potential investments in production capacity.
Considerations for Importers and Exporters
Given this new landscape, companies must adapt their commercial strategies to mitigate the effects of these changes. At TradeFlex, we help our clients optimize their international trade operations through:
- Cost impact and profitability analysis.
- Search for alternative suppliers and supply chain optimization.
- Advice on regulatory compliance and risk mitigation strategies.
If you want to better understand how these policies will affect your business and explore viable solutions, contact us at TradeFlex. Together, we can develop a resilient commercial strategy in this evolving environment.
