Although the recent agreement with China and the expected signing of USCMA to replace NAFTA indicated a thawing of trade tensions we are being reminded that tariffs are still a major issue.
Effective February 8, 2020, the U.S. is extending its Section 232 additional tariffs on steel (25 percent) and aluminum products (10 percent) to specific finished products made with steel and aluminum. These include iron or steel nails, tacks, drawing pins, and staples; aluminum stranded wire, cables, and plaited bands; and steel or aluminum bumper stampings for motor vehicles and body stampings for agricultural tractors.
With such a short time until the effective date, we are awaiting specific instructions from CBP for products which may already be en route with ETAs after February 8th
Importers also may wonder what options they have for avoiding or mitigating these tariffs.
One option may be to shift sourcing. Covered steel products from Argentina, Australia, Brazil, Canada, Mexico, and South Korea, and covered aluminum articles from Argentina, Australia, Canada, and Mexico, will be exempted from the additional tariffs altogether.
In addition, a process for requesting exclusions from the tariffs for specific products is expected to be developed in the near future. Exclusions may be granted for derivative articles determined not to be produced in the U.S. in a sufficient and reasonably available amount or of a satisfactory quality, or based on specific national security considerations.
For more details or questions please contact Priscilla Royster, VP Compliance at firstname.lastname@example.org.