Background:

During his first term (2018-2020), President Trump implemented Section 232 tariffs, citing national security concerns over global overcapacity, particularly from China. These tariffs imposed 25% on steel and 10% on aluminum imports. Over time, exemptions and quota agreements were established with key allies, including Canada, Mexico, the European Union, Japan, and South Korea. Additionally, a process was in place for product exclusions when domestic alternatives were unavailable. These measures led to retaliatory tariffs and trade disputes with various nations.

The Biden administration (2021-2024) shifted strategy by replacing tariffs with quota-based agreements for key partners and focusing on multilateral efforts to address China's steel overcapacity. Notably, Ukraine was exempted from these measures to support its war-affected economy.

Key Changes in the 2025 Tariff Reinstatement:

• Elimination of Exemptions and Quotas: The new tariffs apply uniformly to all countries, including major allies, without any exemptions or quota agreements.

• Discontinuation of Product Exclusions: The Commerce Department has ceased accepting requests for product exclusions, meaning all steel and aluminum imports are subject to the 25% tariff regardless of domestic availability.

• Expanded Coverage to Derivative Products: The tariffs now extend to additional products such as fabricated structural steel and prestressed concrete strands.

• Enhanced Enforcement Against Transshipment: There is increased scrutiny on potential transshipment practices, particularly concerning Chinese steel entering the U.S. market through countries like Mexico.

International Responses:

The European Union has expressed deep regret over the U.S. decision, labeling the tariffs as unjustified and indicating plans for firm and proportionate retaliatory measures. The EU is considering reinstating previously suspended retaliatory tariffs and expanding existing safeguard measures on steel imports.

As of now, the United Kingdom has not issued an official response. However, it is anticipated that the UK may implement retaliatory tariffs on U.S. imports and review its current steel safeguard measures in reaction to the U.S. action.

The official responses and potential retaliatory measures from other countries are still unfolding. We will continue to provide updates on our Import and Trade Remedies Blog as the situation evolves. The best way to stay informed is by subscribing to our weekly newsletter, which provides a concise summary of key developments.