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On March 22, 2022, the United States and the United Kingdom announced in a joint statement that the U.S. will halt Section 232 tariffs on imports of steel and aluminum from the U.K, effective June 1, 2022, and that the U.K. will also lift retaliatory tariffs on over $500 million worth of U.S. exports to the U.K.  The Section 232 tariffs were instituted in March 2018 on all imports of steel and aluminum from multiple countries.  During the summer of 2018 there were negotiated exclusions on a country-by-country basis.  In May 2019 with the signing of the USMCA Free Trade Agreement, Section 232 duties were dropped on imports from Canada and Mexico as well.  The U.S. and U.K agreement is the latest in continuing efforts by the U.S. to address the issue of Chinese overcapacity in both the steel and aluminum industries.  One unique aspect of the U.S.-U.K. agreement is that the U.S. will require that any U.K. steel company owned by a Chinese entity must undertake a financial audit to determine and assess the extent of influence on that entity from the Chinese Government, the results of which the U.K must share with the U.S.

The Secretary of Commerce, Gina M. Raimondo said in a statement that it is a “top priority to rebuild {U.S.} relationships with {its} allies and partners around the world” and this agreement is a step towards reaching that goal in a manner that benefits the American steel and aluminum industries.  Secretary Raimondo also stated that allowing the “flow of duty-free steel and aluminum from the U.K.” will help ease the “gap between supply and demand for these products in the United States.”

Following the announcement on Tuesday, many industry associations and organizations have voiced their support for this agreement including the Alliance for American Manufacturing, the Steel Manufacturers Association, the United Steelworkers union, and the Kentucky Distillers Association.  All of whom were affected by the four years of additional tariffs on imports of steel and aluminum from the U.K., and exports of various goods from the United States.

Husch Blackwell’s International Trade and Supply Chain Team continues to monitor developments related to Section 232 tariffs closely and will provide further updates if or when additional developments occur.  Should you have any questions or concerns, please contact Nithya Nagarajan, Jeff Neeley or Robert Stang.

 

 

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Photo of Nithya Nagarajan Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory…

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.

Photo of Jeffrey Neeley Jeffrey Neeley

Jeffrey has more than 25 years of experience representing private parties in international trade remedies disputes in the U.S. and in foreign jurisdictions. He guides clients in matters including antidumping investigations, countervailing duties, subsidies, intellectual property disputes as well as related customs, export…

Jeffrey has more than 25 years of experience representing private parties in international trade remedies disputes in the U.S. and in foreign jurisdictions. He guides clients in matters including antidumping investigations, countervailing duties, subsidies, intellectual property disputes as well as related customs, export control, and other import/export issues.

Photo of Robert Stang Robert Stang

Bob focuses his practice on customs and international trade law. He brings 30 years of experience to a wide range of issues that affect inbound and outbound goods, including tariff classification, valuation, country of origin marking matters, free trade agreements, and special trade…

Bob focuses his practice on customs and international trade law. He brings 30 years of experience to a wide range of issues that affect inbound and outbound goods, including tariff classification, valuation, country of origin marking matters, free trade agreements, and special trade programs. He also has extensive customs compliance experience and regularly assists importers facing U.S. Customs and Border Protection (CBP) audits, penalties, seizures, redelivery notices and other agency enforcement activities. Bob works with importers and exporters proactively to achieve cost savings and structure programs that meet CBP “reasonable care” requirements. He also handles supply chain security issues, including Customs-Trade Partnership Against Terrorism (C-TPAT) enrollment, verification and annual reviews.