The President Signs Proclamation Overhauling Section 232 Tariffs on Steel, Aluminum, and Copper - ArentFox Schiff

The President signed a significant proclamation on December 28, 2023, which overhauls the existing Section 232 tariffs on steel, aluminum, and copper. This executive action implements an agreement with Ukraine and modifies the tariff landscape for several key commodities and countries. Importers dealing with these materials should be aware of immediate changes taking effect.

One of the primary beneficiaries of this proclamation is Ukraine. The Section 232 tariffs on steel articles imported from Ukraine have been suspended for an additional year, effective January 1, 2024, extending a previous suspension. Conversely, importers of aluminum articles from Russia face significantly higher tariffs. Effective January 1, 2024, a 200% ad valorem tariff will apply to aluminum articles that are products of Russia. Furthermore, the proclamation clarifies that a 200% ad valorem tariff, initially effective March 10, 2023, also applies to aluminum articles where any amount of primary aluminum used in their manufacture was cast in Russia.

The United Arab Emirates (UAE) also sees changes to its Section 232 tariff treatment. Effective January 1, 2024, the previous tariff rate quota (TRQ) for aluminum articles from the UAE has been eliminated. Instead, a flat 10% ad valorem tariff will now apply to all aluminum articles from the UAE. Additionally, copper articles from the UAE will also be subject to a 10% ad valorem tariff, effective January 1, 2024. The proclamation further clarifies that certain derivative articles of steel and aluminum are explicitly subject to Section 232 tariffs, reinforcing their inclusion in the tariff regime.

Given these substantial changes, importers, customs brokers, and trade compliance officers must act swiftly. It is crucial to:

• Review the full text of the proclamation to understand all specific details and nuances.
• Assess how these updated tariff rates and country-specific treatments will impact existing supply chains, sourcing strategies, and landed costs.
• Verify the origin of steel, aluminum, and copper articles, especially for goods from or involving processing in Russia and the UAE.
• Ensure that all import declarations accurately reflect the new tariff rates and classifications, paying close attention to the effective dates.
• Consider consulting with legal counsel or trade compliance experts to navigate the complexities of these updated Section 232 measures and ensure ongoing compliance.