January ’22 at-a-glance … taxes, tariffs & trade
Section 232 quotas in effect for EU imports
Approximately $5.5 billion of EU steel and $1.2 billion of EU aluminum imports with these HTS codes are now able to come into the U.S. tariff free under the new Tariff Rate Quota (TRQ). The new approach replaces earlier 2018 Section 232 tariffs of 25% for steel and 10% for aluminum for imports from the EU. The U.S. has begun similar bilateral negotiations with Japan, South Korea and the United Kingdom (U.K.).
NAFEM publicly expressed its concerns with the TRQ in December comments to the U.S. Department of Commerce (DOC). “The quantitative limits create a threat of the tariffs being reinstated, especially with the anticipated surge in steel and aluminum demand with the recent passage of infrastructure legislation. This type of government restriction on raw materials and intervention may lead to market manipulation, which will further harm America’s smallest manufacturers,” NAFEM said.
30 Section 232 exclusions removed
The DOC removed 26 General Approved Exclusions (GAE) for steel and four for aluminum under the Section 232 steel and aluminum tariffs. The new interim final rule went into effect Dec. 27, 2021. The full list of GAEs, which can be used by any importer, is included in the final rule.