Steel and Aluminum Tariffs

(February, 2025) As of February 19, according to the National Association of Manufacturers, President Trump signed two proclamations adjusting tariffs on U.S. imports of steel and aluminum. 

The first proclamation reinstates 25% tariffs on imports of steel and certain steel derivatives, building on 2018 and 2020 proclamations from the president’s first term. It goes into effect March 12.

• The order cites a decline in U.S. capacity utilization to under 80%, increased imports from countries with “alternative arrangements” and product exclusions that cover a “significant volume” of imports for which the U.S. steel sector could produce goods.
• The 25% tariffs won’t apply to derivative steel products processed in other countries from steel that is melted and poured in the U.S.

The second proclamation increases a tariff on U.S. imports of aluminum and aluminum derivatives from 10% to 25%. It revises proclamations from 2020 and, like the steel proclamation, goes into effect March 12.

• It cites “global excess capacity” in aluminum markets driven by Chinese and South American overproduction, China’s increased investment in Mexico, transshipment (the circumventing of a tariff by shipping through a different country) and concerns about the comingling of primary aluminum from Russia and China with primary aluminum from other nations to produce aluminum products exported to the U.S.

Product exclusions: The proclamations also terminate all product exclusions.

FTZs : Products admitted into a foreign trade zone—parts of the U.S. in which companies can use special customs procedures—will be subject to these duties when brought into the U.S. unless designated as “domestic status.”

TCATA will keep you informed of the latest developments.