Following President Trump’s announcements last week of 25% Section 232 tariffs on U.S. imports of aluminum and steel products, this week saw the publication of Proclamations 10895 and 10896 that newly identify tariff classifications for covered aluminum and steel “derivative articles.”
The new Proclamations, both published in the February 18 Federal Register, include Annexes identifying the applicable Harmonized Tariff Schedule of the United States (“HTSUS,” or “HS”) classifications of the aluminum and steel derivative articles to be covered by the duties.
The lists of HS tariff classifications applicable to derivative articles in the recent Proclamations cover a significantly higher number of items than the existing lists of aluminum and steel derivatives that have been in effect since January 2020. Those original lists, set forth in Annex I and Annex II to Proclamation 9980, applied duties to only a handful of products. By contrast, the new list of aluminum derivative product classifications consists of 118 ten-digit HS codes plus five eight-digit HS codes, and the new list of steel derivative product classifications contains 167 eight-digit HS codes.
With one exception pertaining to aluminum derivatives, the additional 25% ad valorem tariffs will not take effect with respect to the newly identified derivative articles until the Secretary of Commerce provides public notification that “adequate systems are in place to fully, efficiently, and expediently process and collect tariff revenue applicable to covered articles.” Though no deadline or anticipated timeframe for such notification has yet been announced, it is expected to occur later than the March 12, 2025, effective date for the removal of Section 232 duty exemptions for aluminum and steel articles (i.e., non-derivative articles) from Canada, Mexico, and several other countries whose aluminum and steel products have been exempted for several years. The exception is aluminum derivative articles listed in one of the several tariff classification provisions in Annex I to Proclamation 10895 that falls within Chapter 76 of the HTSUS.
Proclamations 10895 and 10896 provide that once the Section 232 tariffs on derivative articles take effect, they will apply to all imports of any derivative article classified in a tariff provision set forth in Annex I to each Proclamation, regardless of the derivative article’s country of origin. However, derivative steel articles processed in another country from steel articles that were melted and poured in the United States, and derivative aluminum articles processed in another country from aluminum articles that were smelted and cast in the United States, will not be subject to Section 232 tariffs.
For all aluminum derivatives covered by Annex I to Proclamation 10895 that are not classified in Chapter 76 of the HTSUS, only the aluminum content in the derivative article is subject to Section 232 tariffs. Similarly, for steel derivatives covered by Annex I to Proclamation 10896 that are not classified in Chapter 73 of the HTSUS, only the steel content in the derivative article is subject to 232 tariffs. Additional guidance may be forthcoming on the appropriate methodology for determining the steel or aluminum content in a derivative article.
As reported in our previous Insights with respect to the aluminum and steel proclamations, the President has directed the Commerce Department to establish by May 11, 2025, a process for including additional aluminum and steel derivative articles within the scope of Section 232 tariffs. The lists of derivative article tariff classifications set forth in the Annexes to Proclamations 10895 and 10896 therefore are expected to expand over time.
Separate from derivative articles, all imports of non-derivative steel articles from all countries will be subject to the additional 25% ad valorem tariffs, and all imports of non-derivative aluminum articles from all countries except Russia will be subject to the additional 25% ad valorem tariffs, as of March 12, 2025. Aluminum (whether articles or derivatives) containing any Russia-origin content continues to be subject to 200% ad valorem tariffs.
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Cassidy Levy Kent’s attorneys, compliance professionals, economists, and licensed customs brokers have experience assisting clients navigating tariff changes, supply chain challenges, and supply chain tracing. We expect further developments in this space and will continue to provide updates. Please contact us with any questions.
This post was updated February 24, 2025, to clarify the effective date of tariffs applicable to aluminum derivative articles, and also to clarify the tariff treatment of such articles when produced from aluminum smelted and cast in the United States.