The US has identified more downstream manufactured products that will be subject to Section 232 tariffs on imports of steel or aluminium derivative goods, Kallanish learns from the Federal Register.
Effective Monday, the US Department of Commerce added 407 codes to the Harmonized Tariff Schedule of the US (HTSUS) list of derivative products. The steel and aluminium portions are subject to the Section 232 tariff rate, whilst the non-steel and non-aluminium content will be subject to a reciprocal tariff rate. The steel content in the imports will be charged a 50% tariff.
US domestic steel interests applaud the development by President Donald Trump’s administration.
“The Steel Manufacturers Association (SMA) congratulates President Trump and the Department of Commerce on a robust inclusions process identifying additional steel-containing products to be covered by the steel tariffs,” SMA president Philip K. Bell comments in a statement Monday. “The steel tariffs are necessary for the national security that a strong steel industry provides.”
Ohio-based steelmaker Cleveland-Cliffs notes the inclusion of electrical steel laminations and cores, as well as certain stainless steel automotive exhaust parts to the list of derivative products.
“Cleveland-Cliffs thanks President Donald Trump and Secretary of Commerce Howard Lutnick for taking decisive and concrete action that will deter tariff circumvention occurring in plain sight with stainless and electrical steel derivative products,” Cliffs president and chief executive Lourenco Goncalves says in a press release. “Since we acquired AK Steel Corporation a few years ago, we have identified and denounced circumvention schemes through Mexico and Canada involving derivative products using steel melted and poured outside of North America. This practice, which has been accepted and supported by both Canada and Mexico — despite its inherent conflict with the original intent of the USMCA trade agreement — has ultimately turned into a blatant tariff evasion subterfuge.”
The Cliffs ceo adds that the new measures provide certainty that the American domestic market will not be undercut by unfairly traded steel within the derivative products. This allows the company to continue investment in its stainless steel and electrical steel operations.
The American Iron and Steel Association (AISI) also credits the Trump administration’s efforts, emphasising military readiness.
“A healthy domestic steel industry is vital to our national defence,” states AISI president and chief executive Kevin Dempsey. “The Section 232 program recognises that steel is essential for military equipment, critical infrastructure and emergency response needs. Strengthening these tariffs helps ensure that America is not reliant on foreign imports in times of national security threats and crises.”
Six months ago, the Trump administration began compiling derivative steel items to add to Section 232 tariffs because of increased imports of certain articles that depressed demand for goods produced by domestic steel mills. Examples include welded angles, shapes and sections of iron or steel; bridges and bridge sections of iron or steel; grill, netting and fencing of iron or steel wire; parts for agricultural, horticultural or forestry machinery; modular building units of steel, and prefabricated buildings.
John Isaacson USA
