The government of the United States has increased the tariff rate applied to all steel and aluminum products, and all steel and aluminum derivatives, imported into the U.S., irrespective of origin.
The new rate of 50% will be applied effective 12:01 a.m., June 4, 2025. This includes goods already in transit at the time the tariffs go into effect.
Stacking rules
It is important to note that unlike the original application of tariffs on steel and aluminum that went into effect on March 13, 2025, these tariffs will not necessarily be applied in addition to other tariffs, but in place of.
Notably, imports that are subject to a 25% tariff because they originate in Canada or Mexico and are also subject to steel and aluminum tariffs will have only the steel and aluminum tariff applied to them. Note that goods originating in Canada or Mexico that qualify under the United States-Mexico-Canada Agreement (USMCA) are not subject to the 25% tariff and, therefore, the 50% tariff on steel and aluminum applies.
Similarly, automobiles and auto parts subject to a 25% tariff will not be subject to steel and aluminum tariffs, as well.
However, aluminum and aluminum derivatives originating in Russia, or products originating in other countries that contain aluminum smelt or cast in Russia remain subject to steel and aluminum tariffs at a rate of 200%.
Application of tariffs on steel and aluminum originating in the United Kingdom
Until July 9, 2025, steel and aluminum products imported from the United Kingdom will remain subject to the original 25% tariff rate. After July 9, the tariff rate may be adjusted at the discretion of the Secretary of Commerce consistent with the terms of the U.S. – U.K. European Prosperity Deal, or in the event it is determined the U.K. has not complied with the relevant aspects of the Deal, adjust the applicable rates of duty to 50%.
Legal status
Please note that the tariffs being applied to steel and aluminum are being applied under Section 232 of the Trade Expansion Act of 1962, which gives the president the authority to apply tariffs in the event imported products threaten national security.
These tariffs are not being applied under the International Emergency Economic Powers Act (IEEPA) and, as such, are not being challenged under the recent ruling of the U.S. Court of International Trade.
Reporting requirements
CBP’s interim guidance instructs importers who do not know the country of smelt and cast for the aluminum content of their product(s), or the country of melt and pour for the steel content of their products to state the country of origin as the country of smelt and cast or melt and pour. The single restriction is that importers may not declare the United States as the country of smelt and cast for aluminum products, or melt and pour for steel products, unless it’s known and supported by relevant documentation.
As previously noted, this is an interim solution. CBP is developing a long-term solution, and this guidance is subject to change with little or no notice.
Livingston will review commercial documents and request importers to make revisions to incorporate country of smelt and cast or require written confirmation by email.
Exceptions
Two exceptions were provided in the original executive order on steel and aluminum tariffs, both specific to aluminum derivatives, which may have a material financial impact on importers.
- Derivatives with aluminum content composed entirely of aluminum smelted and cast in the United States. Importers able to substantiate with documentation that the aluminum or steel content of their derivatives meets this requirement are exempt from the 25% tariff.
- Derivatives that are a product of Russia or include any amount of aluminum or steel content incorporating primary aluminum smelt or cast, or steel melted and poured, in Russia. Derivatives meeting one or both definitions are subject to a 200% tariff based on the entire value of the derivative product, not just the derivative’s aluminum content. Primary aluminum is defined as new aluminum metal produced from alumina (aluminum oxide) by the electrolytic Hall-Heroult process.
Record keeping
While this is an interim solution, importers are still required to follow requisite documentation and record keeping practices without exception, and importers are required to undertake all reasonable efforts to obtain required supporting documentation.
Please take all steps necessary to obtain written evidence that substantiates the declared country of smelt and cast for aluminum products, and melt and pour for steel products. Importers are required to possess and retain supporting documentation for all declarations and information included in their import entries. Failure to have written evidence supporting the declared country of smelt or cast and/or melt and pour may result in importers incurring material financial expense in the future should CBP’s interim guidance be replaced with a less favorable long-term solution.
Recommended next steps
Livingston recommends that importers require suppliers to include country of smelt and cast and/or melt and pour information on commercial invoices, in addition to any other sources in which it is provided. CBP regulations require importers to retain records for a period of five years from the date of entry and make records available to CBP upon request.