ANNOUNCEMENT 31 May 2018

In May 2018, the United States issued a Proclamation imposing 232 import tariffs on certain steel goods from Canada, the European Union and Mexico. Additionally, the Proclamation introduces import quotas on certain steel goods from Argentina and Brazil. 

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The White House, Presidential Proclamation Adjusting Imports of Steel into the United States, issued on 31 May 2018: https://www.whitehouse.gov/presidential-actions/presidential-proclamation-adjusting-imports-steel-united-states-4/
The White House, press release of 31 May 2018, President Donald J. Trump Approves Section 232 Tariff Modifications: https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-approves-section-232-tariff-modifications-2/
U.S. Custom and Border Protection, QB 18-126 Absolute Quota for Steel Mill Articles: Argentina, Brazil and South Korea: https://www.cbp.gov/trade/quota/bulletins/qb-18-126-absolute-quota-aluminum-products-argentina-brazil-south-korea

Inception date: 01 Jun 2018 | Removal date: open ended
Still in force

Import tariff

On 31 May 2018, the United States issued a Proclamation imposing import duties on certain steel goods from Canada, the European Union and Mexico. According to the United States, the tariffs are imposed for reasons of national security concerns under "national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862)."

The rate of duty on imports of certain steel goods is 25%. The tariffs enter into force on 1 June 2018.

Notably, the United States imposed import tariffs on the subject goods on 23 March 2018 with the exception of imports from a number countries including Canada, the European Union and Mexico, see related state act.

Additionally, the Proclamation introduced import quotas on certain steel goods from Brazil and Argentina, see related intervention.

Following the imposition of duties on the subject goods, the EU, Mexico have imposed retaliated against the United States imposing import tariffs on a number of US goods, see related state acts.

AFFECTED SECTORS

 
Inception date: 01 Jul 2018 | Removal date: open ended
Still in force

Import quota

On 31 May 2018, the United States issued a Proclamation imposing import quotas on certain steel goods from Argentina and Brazil. The import quota level is set annually with a quarterly limit. Quarterly and annual quota levels are issued by the U.S. Customs and Border Protection. The quota varies depending on the subject good and the country in question. 

In this context the Proclamation stipulated: "imports from any such country in an aggregate quantity under any such subheading during any of the periods January through March, April through June, July through September, or October through December in any year that is in excess of 500,000 kg and 30 percent of the total aggregate quantity provided for a calendar year for such country, as set forth on CBP.gov shall not be allowed."

The import quota entered into force on 1 July 2018 for goods entering into the United States from 1 June 2018.

Notably, the United States imposed import tariffs on the subject goods on 23 March 2018 with the exception of imports from a number countries including Argentina and Brazil, see related state act. Whilst the import tariff on the subject goods are exempt for these countries, the United States has: "agreed in principle with Argentina, Australia, and Brazil on satisfactory alternative means to address the threatened impairment to our national security posed by steel articles imports from these countries and extended the temporary exemption of these countries from the tariff proclaimed in Proclamation 9705, as amended, in order to finalize the details." No import restriction has to date been imposed on Australia.

Notably, in March 2018, the United States announced the imposition of import quotas on certain steel goods from the Republic of Korea, see related state act.

Additionally, the Proclamation introduced import tariffs on certain steel goods from Canada, the EU and Mexico, see related intervention.