Details have begun to emerge regarding the Trump Administration’s recent move to raise tariffs on imported steel and aluminum to 25% across the board, beginning on March 12. In Presidential Proclamations signed on February 10, President Trump provided details regarding the cessation of country-specific exemptions and/or tariff rate quotas, the cancellation of the individual exemption program, and the application of the increased tariffs to steel and aluminum derivatives.
The alternative agreements pertaining to steel and aluminum with trading partners including Argentina, Mexico, Canada, South Korea, the EU, the UK, Australia, and Brazil will be ineffective as of 12:01 AM EST on March 12, 2025 – the same time the increased tariff rates go into effect.
The authority previously granted to the Secretary of Commerce to grant relief from the tariffs for certain products is also revoked by the new action. As a result, the Section 232 Exemptions Program – which previously allowed companies to apply for tariff exclusions for products not available in a sufficient quantity from U.S. producers – has been ended as of February 10, 2025. Exclusions previously granted by the program remain valid until the earlier of their expiration date or the consumption of their specified quantity, but pending requests will be denied, and no new requests will be accepted. Registered users of the previously established exemptions portal were notified of its cancellation via email.
The Proclamations also specified that the increased tariffs will apply to steel and aluminum derivative articles, unless they are manufactured using steel/aluminum poured or melted in the United States. Unlike the tariffs on steel and aluminum themselves, however, the tariffs on derivative products will not go into effect automatically on March 12. Instead, their application is effective upon public notification by the Secretary of Commerce that adequate systems are put in place to “fully, efficiently, and expediently process and collect tariff revenue for covered articles.” A list of covered derivative articles will be included in an Annex to the Proclamation, which is not yet available. The Secretary of Commerce also has 90 days to establish a process to add additional derivative articles to the scope of the tariffs – either upon a petition by a domestic producer or by the Secretary’s own judgement. The Secretary must rule on requests received under this program within 60 days.
Other countries have already threatened retaliatory measures. The European Commission described the tariffs as “unjustified” and pledged “firm and proportionate countermeasures,” while Canada’s industry Minister Francois-Phillipe Champagne indicated a “clear and calibrated” response would be forthcoming.