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The recent position of the U.S. at the G7 meeting appears sends the message that the government is taking a hard line on steel/aluminum tariffs. What does this mean for your business?
The G7 ‘fall out’ follows the June 1 decision by President Trump to include Canada, Mexico and the European Union on the list of trading partners subject to 25% tariffs on certain imported steel and 10% tariffs on certain aluminum products.
This trade dispute involves Section 232 of the Trade Act, a little-known measure which authorizes the President to adjust the tariff on imports that are considered a threat to national security.
Products that are in-scope include semi-finished steel products as well as steel bars, rails and rods. These products are often used in construction as well as the manufacturing of agricultural products.
Countries in-scope include all importers except those currently temporarily exempted by the President.
Further complicating matters, there is no sunset provision, which means the current duties will be imposed unless or until the President revokes the measures or an individual U.S. company files for and is granted an exception.
What does this mean for KCOE clients?
Companies that are negatively impacted by the order must evaluate their impact together with trade and tariff experts and potentially, request to be excluded from the tariffs.This is particularly important as companies will be refunded duties paid if approved.
Should a company object?
Yes, companies that are negatively impacted by the order should object in order to (a) be removed from the list and (b) receive refunds of any duties.
How can K·COE ISOM help?
K·Coe Isom has expertise to help evaluate your impact and assist you with exclusion applications.
Our Supply Chain Services team helps clients understand whether their products and the country from which they source are “in scope”, advise on the potential impacts, and help you prepare and file exemptions with the U.S. Department of Commerce. This includes sourcing advice and risk management counsel throughout the process.
We also monitor the posting of the comments throughout the 90-day process. If the petition is approved, we will assist to ensure any duties paid will be refunded back to the date on which the petition was posted on the website.