Section 232 Tariff Changes on Steel and Aluminum Products from the U.K. and Ukraine

Trade Update • June 2, 2022

he United States has replaced the existing 25% on the UK’s steel and 10% on aluminum products under Section 232 with a tariff-rate quota (TRQ). Section 232 tariffs for steel imports from Ukraine have also been suspended. These changes went into effect on June 1, 2022.

UK

Under the TRQ arrangement, UK steel products will enter the U.S. market without the application of Section 232 tariffs as follows:

TRQs

Annual import volume under the TRQ for UK steel is set at 0.5 million metric tons (MMT) under 54 product categories, these categories can be found under Annex 1 here.

Annual import volume under the TRQ for UK aluminum is set at 0.9 thousand metric tons (TMT) for unwrought aluminum under 2 product categories and 11.4 TMT for semi-finished (wrought) aluminum, other than foil (7607), under 12 product categories. For foil (7607) the annual import volume under the TRQ is set at 9.3 TMT under 2 product categories. The import volumes for foil (7607) will be allocated in line with the 2021 reference period. Product categories can be found in Annex 2 here.

Section 232 steel and aluminum products from the UK that are within-quota will enter duty-free while all Section 232 products entering above-quota will continue to be subject to a duty of 25% (on steel), and 10% (on aluminum).

What Products are Eligible?

Steel imports must be “melted and poured” in the UK and have a UK country of origin. Steel imports which are melted and poured in the UK but further processed in the EU, imported into the United States may be eligible for duty-free treatment under the TRQ and count against the UK TRQ volume, not to exceed 37.8 thousand metric tons (TMT) annually.

In order for semi-finished (wrought) aluminum imports products to be eligible for duty-free treatment under the quota they must not contain primary aluminum from the People’s Republic of China, the Russian Federation or the Republic of Belarus.

Ukraine

A presidential proclamation has set in motion the suspension of the 25% Section 232 tariffs on steel imported from Ukraine, effective June 1, 2022 – June 1, 2023.

In light of the ongoing security discussions and significant disruption of Ukraine’s ability to produce steel, the President has concluded that Ukraine’s present situation presents a special case. The Secretary shall monitor the situation in the domestic steel industry and developments in Ukraine’s steel industry and inform the President of any need to terminate or extend this suspension.

Note: Any imports of steel articles from Ukraine that were admitted into a U.S. foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on June 1, 2022, shall be subject upon entry for consumption made on or after 12:01 a.m. eastern daylight time on June 1, 2022, to the 25 percent rate of duty imposed by Proclamation 9705, as amended.