Until now, according to the extracts of the Section 232 reports of the Foreign Trade Department that were sent to President Trump, the Steel and Aluminum products that would be affected by this new tariff rates (still subject to change) are those classified under the following HTS codes:
Carbon and Alloy Flat Product (Flat Products); 720810, 720825, 720826, 720827, 720836, 720837, 720838, 720839, 720840, 720851, 720852, 720853, 720854, 720890, 720915, 720916, 720917, 720918, 720925, 720926, 720927, 720928, 720990, 721011, 721012, 721020, 721030, 721041, 721049, 721050, 721061, 721069, 721070, 721090, 721113, 72114, 721119, 721123, 721129, 721190, 721210, 721220, 721230, 721240, 721250, 721260, 722511, 722519, 722530, 722540, 722550, 722591, 722592, 722599, 722611, 722619, 722691, 722692, 722693, 722694, 722699.
Carbon and Alloy Long Products (Long Products); 721310, 721320, 721391, 721399, 721410, 721420, 721430, 721491, 721499, 721510, 721550, 721590, 721610, 721621, 721622, 721631, 721632, 721633, 721640, 721650, 721699, 721710, 721720, 721730, 721790, 722520, 722620, 722710, 722720, 722790, 722810, 722820, 722830, 722840, 722850, 722860, 722870, 722910, 722920, 722990, 730110, 730210, 730240, 730290.
Carbon and Alloy Pipe and Tube Products (Pipe and Tube Products); 730410, 730419, 730421, 730423, 730429, 730431, 730439, 730451, 730459, 730490, 730511, 730512, 730519, 730520, 730531, 730539, 730590, 730610, 730619, 730620, 730629, 730630, 730650, 730660, 730661, 730669, 730690.
Carbon and Alloy Semi-finished Products (Semi-finished Products); 720610, 720690, 720711, 720712, 720719, 720720, 722410, 722490.
Stainless Products; 721810, 721891, 721899, 721911, 721912, 721913, 721914, 721921, 721922, 721923, 721924, 721931, 721932, 721933, 721934, 721935, 721990, 722011, 722012, 722020, 722090, 722100, 722211, 722219, 722220, 722230, 722240, 722300, 730411, 730422, 730424, 730441, 730449, 730611, 730621, 730640.
The Companies that will be more affected by these new rates are those located in the Unites States and which their production depends mostly of Steel and Aluminum as their raw material since, presumably, the domestic production will not be able to supply the demand, which will force for importations under the new rates.
If the new rates proposed for Steel and Aluminum proceed, some countries are already analyzing the possibility of imposing taxes to key products exported by the United States as retaliation for such measures. Mexico and Canada, on their side, are negotiating for their exports to be exempted of these new tariffs pursuant to NAFTA.
In Mexico, the regulation regarding the importation of these kind of products considered sensible will continue, in consequence companies need to keep on complying with the regulation governing importations onto Mexico (sectorial Importers Registry, IMMEX, Rule 8th).
Should you have any questions or comments regarding the foregoing, please do not hesitate to call your usual contact in the firm.
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