Trump Initiates Investigation of Tariffs on Imported Steel and Aluminum Products

In its first day, the Trump Administration issued a package of new executive orders and policy memoranda that impact many sectors of the economy. Included in the package is a release titled the America First Trade Policy, in which the president has initiated a new investigation into potentially imposing new or different tariff restrictions on imported steel and aluminum.

Specifically, President Trump tasked his:

“Assistant to the President for Economic Policy, in consultation with the Secretary of Commerce, the United States Trade Representative, and the Senior Counselor for Trade and Manufacturing, shall review and assess the effectiveness of the exclusions, exemptions, and other import adjustment measures on steel and aluminum under section 1862 of title 19, United States Code, in responding to threats to the national security of the United States, and shall make recommendations based upon the findings of this review.”

Title 19 of the U.S. Code section 1862, also known as Section 232 of the Trade Expansion Act, allows the president to impose tariffs or import restrictions on imports of a given commodity if such imports are deemed to be a threat to national security. Generally, the president tasks the Secretary of Commerce to investigate the impact of imports on national security and report back with that assessment within 270 days. Upon receipt of that report, the president has 90 days to decide whether to adjust imports, impose tariffs or restrictions, or take some other action.

In the current Section 232 context related to steel and aluminum, the president has asked for the initial assessment by April 1, 2025, providing less than 70 days to complete the investigation and for the Secretary to draft and submit the report. The announcement is silent on the process and timing by which the administration will receive comment.

In his first administration, President Trump imposed a 25% tariff on imported steel and a 10% tariff on aluminum imported from most countries. Since then, the U.S. has negotiated agreement tariff rate quotas suspending these tariffs on a set volume of products imported from the EU, Japan and the UK. In addition, several other countries received exceptions for derivatives of steel and aluminum. A list of those affected products can be found here, in the annexes to Proclamation 9980.

The Biden administration continued to utilize Section 232, including a July 2024 finding that imposed a 25% tariff on steel and steel derivative products imported from Mexico if the steel is melted and poured in a country other than Mexico. The same finding also imposed Section 232 tariffs on aluminum and aluminum derivative products imported from Mexico of between 10% and 200%, depending on the country in which the aluminum was smelted.

Exclusions from Section 232 tariffs may be granted if it is determined that a given steel or aluminum article: (1) is not produced in the U.S. in a sufficient and reasonably available amount or of a satisfactory quality, or (2) should be excluded based on specific national security considerations.

This issue will have a significant impact on many firm clients, as the imposition of these tariffs will result in increased costs being passed through to U.S. companies and their customers. We are staying up-to-the-minute on all the latest executive orders and policy memoranda, and will continue to keep you informed of changes.

If you have any questions, please contact Pierce Atwood energy partner Joe Donovan.