On Friday, May 17, 2019, the United States announced the elimination of all steel and aluminum tariffs against Canada and Mexico, effective May 20, 2019. In joint statements with the United States, Canada and Mexico also agreed to eliminate all retaliatory tariffs against the U.S.
Additionally, the countries agreed to implement measures to monitor steel and aluminum trade for any meaningful surges above and beyond historical levels. Any identified surges will trigger a review and allow the importing country to re-impose steel tariffs of 25 percent and aluminum tariffs of 10 percent (specific to the surged products only). If such measures are imposed, the exporting country may retaliate only in the specified steel or aluminum sector.
The three countries also took aim at China by agreeing to implement measures to:
- Prevent the importation of aluminum and steel that is unfairly subsidized and/or sold at dumped prices; and
- Prevent the trans-shipment of aluminum and steel made outside of North America to be shipped to other North America countries. The countries will consult together on these measures.
According to CBP CSMS 19-000252, Section 232 duty on imports of steel and aluminum articles with a country of origin of Canada or Mexico will no longer be in effect for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01a.m. eastern daylight time on May 20, 2019.
Importers are advised not to report Harmonized Tariff Schedule (HTS) classification 9903.80.01 or 9903.85.01.
- Report the regular chapter 72 or 73 HTS classification for steel products.
- Report the regular chapter 76 HTS classification for aluminum products.
For more information, please contact your local MIQ Logistics, a company of Noatum Logistics representative.