Biden administration raises import tariffs

On July 10, 2024, the Biden administration announced an increase in import tariffs on aluminum and steel products. The increase in tariffs is the latest measure to combat the circumvention of Section 301 tariffs on Chinese-origin products by shipping products through third countries.

The changes apply to goods imported or withdrawn for consumption on or after July 10, 2024.

Aluminum tariff increase

The Administration announced smelter and last minted country requirements for “Product of Mexico” aluminum products. The Administration also announced an increase in the Section 232 tariff rate on “Product of Mexico” aluminum products and derivative aluminum products that are smelted, sub-smelted, or last minted in China, Russia, Belarus, or Iran. The term smelter country is defined as follows:

• Smelting country of origin: The world’s largest producer of new aluminum metal from alumina (or alumina) using the Hall-Heroult electrolysis process.
• Secondary smelting country: The world’s second largest producer of new aluminum metal, whose raw material is electrolytic Hall-Heroult alumina (or alumina).
• The country where the actor performed recently: The country where aluminium (with or without alloying elements) is finally liquefied by heating and cast into a solid state. The final solid state can be a semi-finished product (slab, billet or ingot) or a finished aluminium product.

The Harmonized Tariff Schedule of the United States (“HTSUS”) was revised, specifically, Note 19 was added to subchapter III of chapter 99, to reflect the changes in tariff rates.

To obtain an exemption from the Section 232 tariffs, importers of aluminum and aluminum derivative products produced in Mexico must provide a certificate of analysis stating that the product does not contain “primary aluminum whose reported primary smelter, secondary smelter, or most recent mint country is China, Russia (subject to paragraph 10 of this proclamation), Belarus, or Iran.”

According to the announcement, U.S. Customs and Border Protection (“CBP”) will implement the smelting and casting information requirements “as quickly as possible.”

Steel tariff hike

The Administration also announced melting and pouring standards and increased the Section 232 tariff rate on “Mexican product” steel and its derivatives that are not melted or poured in the U.S., Canada, or Mexico. In addition, the HTSUS was amended, specifically by adding Note 16 to Chapter 99, Section III, to reflect the changes in tariff rates.

To demonstrate and comply with the melt and pour standards, affected importers “shall” provide CBP officers with documentation that adequately identifies the location where the steel was melted and poured. The President also issued an order to CBP to implement the melt and pour information requirements “as expeditiously as possible.”

Please contact the Husch Blackwell trade team to discuss how the changes outlined here may affect your imports.