Broad Scope of Additional Tariffs on Steel and Aluminum Derivatives

The duty will not apply to steel derivative articles processed in another country from steel articles that were melted and poured in the U.S. nor to aluminum derivative articles processed in another country from aluminum that was smelted and cast in the U.S.

The notices with the annexes that list the HTSUS numbers are posted on the Federal Register website for February 18, 2025:

• Steel – 2025-02833.pdf
• Aluminum – 2025-02832.pdf

The effective date depends on the applicable HTSUS chapter:

• March 12, 2025
  • The additional duty applies to steel articles and derivative steel articles in Chapter 73 and to aluminum articles and derivative aluminum articles in Chapter 76.
  • The steel articles and derivative steel articles rate of duty continues at 25%.
  • The aluminum articles and derivative aluminum articles rate of duty increases from 10% to 25%.
  • The additional duty rate for aluminum articles and aluminum derivative articles from Russia continues to be 200%.
• Date TBD
  • The additional duty applies to the metal content value of derivative steel and aluminum articles in the other affected chapters. The effective date will be after the Department of Commerce (Commerce) gives public notice that adequate systems are in place to declare and collect the associated duties.

A challenging aspect for importers will be the process for ascertaining, certifying, and declaring the metal content source and value for articles not in Chapters 73 or 76 to limit the tariff assessment to that metal content or to exempt the product based on U.S. content. Importers should anticipate it will be cumbersome and likely require them to pay the duty on the full product value if unable to properly determine the source and value of the metal content.

Commerce is also required to establish a process for identifying additional derivative products that could become subject to the 25% tariffs. This process will also allow domestic producers to submit requests. Commerce is directed to render a decision within 60 days of receipt of a request.

As additional tariffs are added, importers need to mindful of all applicable tariffs. For example, articles from China on these lists may be subject to:

• The regular duty rate
• Section 232 duties of 25%
• Section 301 duties of 25% or 7.5%
• The new IEEPA duties of 10%
• Antidumping and/or countervailing duties
• The potential future reciprocal tariffs

As we prepare for the March 12, 2025 implementation, we await the Customs and Border Protection (CBP) CSMS messages that will provide operational instructions for entry of affected products.

Reminders from prior communication regarding steel and aluminum articles and derivatives:

• All country exemptions are eliminated.
• All general approved exclusions are eliminated.
• Product exclusions: Effective February 10, 2025 Commerce will not consider or renew any product exclusion requests. Exclusions already granted will remain effective until their expiration date or until the excluded product volume is imported, whichever occurs first.
• Foreign trade zones: On the respective effective dates, admissions to an FTZ must be admitted as privileged foreign status, unless eligible for admission under domestic status.
• Penalties: CBP shall prioritize reviews of entries of steel and aluminum and derivative articles. If it discovers misclassification resulting in non-payment of these duties, it shall assess monetary penalties in the maximum amount permitted by law and the steel Executive Order specifies CBP shall not consider any evidence of mitigating factors in its determination. In addition, CBP shall notify Commerce regarding evidence of any efforts to evade the steel or aluminum duties through processing or alteration of steel or aluminum articles or derivative steel or aluminum articles prior to importation, in which case Commerce shall consider the articles for inclusion as derivative steel or aluminum articles.
• Drawback: No drawback of these duties will be permitted.

We will provide additional information as it becomes available. Please reach out to your Schenker contact for questions.

NEW DERIVATIVE ARTICLES BY HTUS CHAPTER NUMBERS
The following lists are not all inclusive. It is vital all importers review the annexes and compare to their imported products.

STEEL DERIVATIVES
The 25% tariff will be applied to the full value of products in Chapter 73, effective March 12, 2025.

For articles in other chapters, the 25% tariff will be applied to the steel content, effective on a date to be determined.

HTS Chapter 73
Essentially the entire HTSUS Chapter 73 is now subject to the additional tariff. Previously a portion of the subheadings early in the chapter were declared to be steel articles subject to the Section 232 tariffs, and only some of heading 7317 was declared to be steel derivatives. Under the new order, the balance of Chapter 73 is declared to be steel derivatives, with a small carve out for some articles of cast iron.

The additional tariffs cover:

• Construction, manufacturing, and industrial products
• Stoves, ranges, barbeques, and other appliances
• Table, kitchen or other household articles, including cookware
• This order duplicates subheadings 7317.00.30, 7317.00.55, and 7317.00.65, for articles such as nails, tacks, and staples that are already covered under the existing derivatives list. Future Commerce communications will be expected to clarify which HTSUS Chapter 99 number will be applied to future entries.

HTS Chapter 84

• Parts of certain elevators and escalators
• Bulldozer or angledozer blades
• Parts of certain cranes
• Plows
• Parts of certain agricultural, horticultural or forestry machines, and lawn or sports ground rollers

Chapter 85

• Certain insulating fittings

Chapter 94

• Metal furniture not for use in an office. HTSUS 9403.20.00 is included on both the steel and the aluminum list. Future Commerce communications will be expected to clarify which HTSUS Chapter 99 number will be applied to future entries.
• Parts of lighting. Subheading 9405.99.40 is included in this list with 9405.99.4020 more specifically listed on the aluminum derivatives list. Future Commerce communications will be expected to clarify which HTSUS Chapter 99 number will be applied to future entries of 9905.99.4010 and 9405.99.4090.
• Prefabricated buildings, including modular building units and greenhouses

ALUMINUM DERIVATIVES

The 25% tariff will be applied to the full value of products in Chapter 76, effective March 12, 2025.

For articles in other chapters, the 25% tariff will be applied to the aluminum content, effective on a date to be determined.

Chapter 66

• Certain parts and accessories of umbrellas, walking sticks, and riding-crops

Chapter 76
Much of HTSUS Chapter 76 is brought into the Section 232 tariffs. Previously a portion of the subheadings early in the chapter were declared to be aluminum articles subject to the Section 232 tariffs, and only some of heading 7614 was declared to be aluminum derivatives. Under the new order, the balance of Chapter 76 is declared to be aluminum derivatives, with a small carve out for aluminum waste and scrap, powders and flakes, and certain aluminum containers such as tanks and drums.

The additional tariffs cover:

• Table, kitchen or other household articles, including cookware
• Fasteners
• Luggage frames
• Ladders
• Venetian blinds and parts
• Other articles of aluminum

Chapter 83

• Mountings and fittings
• Picture frames / parts and mirrors / parts, made of base metal

Chapter 84

• Axial fans
• Parts of air conditioners, refrigerators, freezers, dish washers, trash compactors, and water heaters
• Heat exchangers
• Parts of mechanical appliances for spraying
• Parts and accessories of printed circuit assemblies
• Other parts of computer related equipment
• Parts of valves
• Parts and accessories for semiconductor equipment
• Other machines and machine parts

Chapter 85

• Parts of motors
• Parts of vacuum cleaners, flashlights, welding machines, microwave ovens, stoves and ranges
• Parts of telecommunications, radio, radio navigational, and remote control equipment
• Parts of electrical apparatus and other electrical machines
• Boards and panels for switching equipment
• Parts of semiconductor devices
• Conduit tubing and joints

Chapter 87

• Certain bumpers that are on the existing derivatives list. Future Commerce communications will be expected to clarify which HTSUS Chapter 99 number will be applied to future entries.
• Parts of vehicle bumpers, bodies, suspension systems, and powertrains

Chapter 88

• Other parts of airplanes, helicopters or unmanned aircraft not for use in civil aircraft

Chapter 90

• Other parts and accessories of lasers and other optical appliances and instruments
• Other parts and accessories of measuring or checking instruments

Chapter 94

• Metal furniture used in offices
• Metal furniture not for use in an office. HTSUS 9403.20.00 is included on both the steel and the aluminum list. Future Commerce communications will be expected to clarify which HTSUS Chapter 99 number will be applied to future entries.
• Parts of furniture used for motor vehicles, toddler beds, cribs, children’s play yards / enclosures, and other metal furniture parts
• Aluminum lampposts and bases

Chapter 95

• Sporting equipment and parts and accessories, including the following:
  • Skis
  • Rackets
  • Roller skates
  • Exercise cycles, rowing machines, and similar equipment
  • Archery equipment
  • Baseball, football, soccer, and polo equipment
  • Hockey equipment
  • Lacrosse sticks
  • Swimming and wading pools
  • Fishing rods and nets

Chapter 96

• Other brushes and articles such as mop heads