Answers to 21 Frequently Asked Questions About Trump’s Steel and Aluminum Tariffs

At a Glance

• To assist you in navigating these complex and evolving regulations, we have compiled a list of the most frequently asked questions along with detailed answers.
• Our goal is to provide you with accurate and practical information to help you understand the impact of the tariffs on your business operations.

In light of the recent changes to U.S. trade policy, specifically the imposition of tariffs under the Trump administration, Faegre Drinker’s trade team has received a significant number of inquiries from clients and partners seeking clarity on various aspects of these tariffs. To assist you in navigating these complex and evolving regulations, we have compiled a list of the most frequently asked questions along with detailed answers. 

Frequently Asked Questions

Question 1: What types of articles are covered by the 25% tariffs that begin March 12, 2025?

• Steel and aluminum “articles” that were initially described in presidential proclamations in 2018;
• Steel and aluminum “derivative articles” that were initially described in presidential proclamations in 2020; AND
• Steel and aluminum “derivative articles” described in executive orders (EOs) on February 13, 2025.

Question 2: If Section 232 tariffs have been in place since 2018, what are the new tariffs?

• All tariff-rate quotas (TRQ) (applicable to the EU, Japan and the UK) and absolute quotas (applicable to Argentina, South Korea and Brazil) are no longer applicable.
• Complete exemptions for Australia, Canada, Mexico and Ukraine are no longer applicable.
• Aluminum tariffs have increased from 10% to 25%.
• Significant expansion of the “derivative articles list.”
• No additional exclusions at present (see below).

Question 3: Are articles classified in Chapter 72 subject to 25% tariffs beginning March 12?

• Yes; certain headings in Chapter 72 are subject to the tariffs pursuant to the initial list of steel “articles”. Other than the removal of new exclusions and the removal of the TRQs and quotas, nothing has changed with respect to Chapter 72.

Question 4: Is the term steel/aluminum defined within the Section 232 executive orders?

• There are no further definitions provided beyond the commercial use of the terms “steel” and “aluminum” or tariff definitions, if available. 
• We recognize that this may be particularly complicated when considering the aluminum/steel content for derivative articles. If you believe it is a gray area, you may wish to contact the authors for more information.

Question 5: What about goods made of iron?

• We do not believe that iron is currently subject to the Section 232 tariffs; however there is not an explicit exclusion. Rather, the EOs use the plain language of “steel” and “steel mill articles,” which indicate that they are targeting carbon alloy steel products, not iron; but U.S. Customs and Border Protection (CBP) could always issue different guidance prior to March 12. 

Question 6: For the “derivative articles,” if the tariff classification is not in Chapter 73 (for steel) or Chapter 76 (for aluminum), is it still subject to 25% tariffs regardless of whether it contains aluminum or steel?

• For the derivative articles classified outside Chapters 73 or 76, they must contain the metal for the list that they are on in order for duties to apply. 
• Example: Subheading 8302.50.0000 is on the aluminum derivatives list, but not the steel derivatives list. Subheading 8302.50.0000 provides for “hat-racks, hat pegs, brackets, and similar fixtures and parts thereof”; accordingly, steel or aluminum hat racks could be imported under this HTS code. In such a scenario, if your imported hat rack is made of steel and not aluminum, then it would not be subject to the 25% tariffs on aluminum derivative articles.
• We recommend adjusting invoices to specify the material in these instances — i.e., STEEL hat rack, DOES NOT CONTAIN ALUMINUM.
• (Note: If you have a scenario where you are classifying something in Chapters 73 or 76 and do not believe it contains steel or aluminum, you may wish to contact the authors as there may be underlying classification issues.)

Question 7: How will our customs broker know not to pay tariffs on imports classified under the “derivative articles” HTS codes, but which are not made from aluminum or steel, as applicable?

• First, and foremost, clear communication with your broker on which SKUs are subject to duties or not is paramount here. Brokers are likely to default to applying duties based on the HTS code. 
• Example: A wooden hat rack classified under 8302.50.00 with brass hooks — does not contain aluminum (or steel). You should instruct your broker to not claim the Chapter 99 code for aluminum derivatives. For right now, the steel doesn’t matter since this is not on the steel derivatives list, but the same logic would apply under the scenario above where you have steel hooks.
• We recommend having your foreign producers include an explanation on the commercial invoice underneath the invoice line relative to that product that states something like the following “DOES NOT CONTAIN ALUMINUM” or “DOES NOT CONTAIN STEEL,” as applicable.

Question 8: What are the exceptions to the 25% tariffs to begin March 12 on aluminum or steel “articles” (i.e., not derivative articles)?

• We believe that U.S.-origin steel and aluminum “articles” will be excepted based on a previous Cargo Systems Message Service (CSMS) message implementing the original 2018 tariffs; however, the EO is silent on this point and CBP has not yet released any guidance on its implementation of these new EOs.

Question 9: What are the exceptions to the 25% tariffs to begin March 12 on aluminum or steel “derivative articles”?

• There is an exception for imports of “derivative articles” manufactured from steel melted/poured in the United States or aluminum smelted/cast in the United States; therefore, we think that is possibly the only exception for “derivative articles.”
  • We note this distinction as it contrasts with previous exceptions noted by CBP in its CSMS message interpreting the original derivatives list in 2020, because the original “derivative article” proclamation did not include an exception for melted/poured or smelted/cast “derivative articles.”

Question 10: How will our Customs broker know not to pay tariffs on “derivative articles” manufactured from steel melted/poured in U.S. or aluminum smelted/cast in the United States?

• We recommend having your foreign producers include an explanation on the commercial invoice underneath the invoice line relative to the product that states something like the following: “ALUMINUM SMELTED/CAST IN UNITED STATES” or “STEEL MELTED/POURED IN UNITED STATES.”
• With respect to all aluminum imports, whether articles or derivatives, on any of the lists, AND regardless of the countries for smelt/cast you are required to declare: (1) the primary country of smelt; (2) the secondary country of smelt; and (3) the country of cast, in order to demonstrate that these are not from Russia and your imports are not subject to the 200% for Russian articles.
• Be prepared to support this statement with mill certificates (steel) or certificates of analysis (aluminum).

Question 11: How do the EOs define country of smelt/cast for aluminum reporting requirements?

• The EOs do not have specific guidance on this point, but CBP has previously issued instruction via CSMS message as follows:
  • Primary country of smelt: The country where the largest volume of new aluminum metal is produced from alumina (or aluminum oxide) by the electrolytic Hall-Héroult process
  • Secondary country of smelt: The country where the second largest volume of new aluminum metal is produced from alumina (or aluminum oxide) by the electrolytic Hall-Héroult process
  • Country of cast: The country where the aluminum (with or without alloying elements) was last liquified by heat and cast into a solid state
  • Note: Accordingly, and importantly, scrap is exempted from the country of smelt requirements, but is relevant for country of cast. 

Question 12: For derivative articles classified outside Chapters 73 or 76, do we have to pay the 25% tariff on the full value of the article?

• No; the EOs state that the 25% tariff need only be paid on the “value” (i.e., “ad valorem”) of the aluminum or steel “content” of the “derivative article.”

Question 13: How do we calculate the value of the aluminum or steel “content” in a “derivative article”?

• Ideally, a producer would calculate the total value of the steel or aluminum content in the “derivative article” (e.g., contains 24 ounces of steel purchased at $1.65/ounce = $39.6, which may require going further back in your supply chain for support).
• However, it may be that your supplier only has a bill of materials with a breakout for the subcomponent that contains the aluminum or steel (e.g., $50 on the bill of materials for that subcomponent including labor/processing beyond the steel or aluminum value).
• Whichever way the value is calculated, it must be supportable using reasonable methods.

Question 14: How will our customs broker know the value of the aluminum/steel content to pay duty on? 

• We recommend having your supplier include an explanation on the commercial invoice underneath the invoice line relative to the product that states something like the following: “STEEL CONTENT OF PRODUCT: $39.6.”
• If you are relying on your supplier who is not the direct producer of the underlying merchandise, ensure that there is significant support for their claims.

Question 15: Are we sure that the two lists of “derivative articles” (i.e., the ones from 2020 and the ones issued last week) will have the same exceptions?

• No; per the plain language of the most recent EO, it is written as if the smelted/poured or melted/cast exception and the value content rule only apply to the “derivative articles” under the HTS codes added to the Section 232 paradigm last week.
• Example: 8708.10.30 was on the original Section 232 steel and aluminum derivatives list, but even though it is not in Chapter 73 or Chapter 76, there is a possibility as currently written it would still be subject to 25% tariffs on the full value.
• We anticipate that CBP will provide additional guidance on this point to potentially limit exposure for these tariff codes (8708.10.30 and 8708.29.21 — on both the original steel/aluminum tariff lists).

Question 16: Is drawback available for the 25% tariffs beginning March 12?

• No.

Question 17: Does the use of headings in Chapter 98 provide relief from the 25% tariffs?

• As currently written, there are no Chapter 98 exceptions for the 25% 232 tariffs. The EO is silent on the topic. Notably, there were no Chapter 98 exceptions under the original 2018 or 2020 tariffs.
• We expect that this silence is intentional, as the recent IEEPA tariffs included specific Chapter 98 exceptions; but there is a remote possibility that CBP issues differing guidance.

Question 18: How do these duties apply with respect to GRI 3(b)(c) XVV sets/kits?

• Unfortunately, there is no guidance that we have identified by CBP on this, and we are waiting on a CSMS or additional guidance. 
• While Section 301 included explicit exclusions only applying duties based on the essential character of the kit, given the “value” components of the derivatives lists, it appears the application of the Section 232 tariffs is more aggressive than Section 301 and that the lack of an explicit exemption is intentional. 
• Accordingly, we believe that CBP may treat sets/kits as they do in AD/CVD and the payment would be required with a breakout of the component lines.

Question 19: Will there be an exclusion process?

• The process for importer-specific exclusions has been canceled (even though existing exclusions remain valid through their individual expiration: that the earlier of the full use of the requested volume has been imported or until one year after the date granted, and the “generally approved exclusions” — i.e., broad HTS exclusions allowed due to no domestic production — end as of March 12, 2025. 
• There has been some pushback from Republicans in the House and Senate, who are hoping the appointment of USTR Secretary Greer may pave the way for some exclusion process. However, we have information that the Department of Commerce has already begun dismantling the portions of the federal government that were responsible for administering these exclusions, making reinstating an exclusion process difficult.
• We believe that bilateral agreements in the form of TRQs or quotas with potential additional melt/pour and cast/smelt requirements particularly with respect to China are more likely, at least in the near term. 

Question 20: Do we think the list of “derivative articles” could expand?

• Yes; the Secretary of Commerce has been directed to establish a process by May 11 to consider domestic producers’ requests to add additional “derivative articles.”
• In particular, we believe that HTS codes listed on the aluminum annex, but which contain steel, but are not listed on the steel annex (and vice versa) are particularly ripe for addition to the alternative respective list. 

Question 21: What about Turkish steel imports?

• While there have been reports of Turkish imports of steel articles subject to 50% duties, we believe that the applicable rate of duty is 25% for Turkish imports of steel articles. We believe that this uncertainty may be related to confusing implementation language that references earlier 50% duties on Turkish steel articles that were in place between August 2018 and May 2019.
• However, we believe that Turkish imports will be falling under the "catch-all" provision of clause (2) of the proclamation which provides as follows: (2)(b) "all steel articles imports covered by heading 9903.80.01 [. . .] shall be subject to an additional 25 percent ad valorem rate of duty" (xi) "from all countries on or after 12:01 a.m. eastern time on March 12, 2025, unless suspended."

For More Information

Our goal is to provide you with accurate and practical information to help you understand the impact of the tariffs on your business operations. Should you have any further questions, please do not hesitate to contact our team.