NEW STEEL AND ALUMINUM TARIFFS, RECIPROCAL TARIFFS: WHAT YOU NEED TO KNOW

A new round of executive orders (“EO”) are expected from the White House soon, which could see new tariffs across the board. This comes after last week saw the levying of tariffs against China, Mexico, and Canada, with the Canada and Mexico tariffs being postponed for another month.

This weekend, President Trump gave insight into the anticipated EOs, proposing a 25% tariff on all steel and aluminum imports. The last Trump Administration placed tariffs on steel and aluminum, which were increased by the Biden Administration. Presumably, the new 25% tariff would be additional to those previously imposed. It is unclear whether the new tariffs will include a process for exclusion from the tariff, as we saw with previous steel and aluminum tariffs.

In addition, President Trump heralded a global “reciprocal” tariff, which mirrors a promise he made on the campaign trail. Speaking about the new EO, the President said: “If they charge us, we charge them. That’s all. Every country will be reciprocal.” Using an example for context, According to the President Trump’s campaign website India maintains a 32.9% tariff on cereals from the United States, while the United States has only a 3.1% tariff on cereals from India. Presumably, under this new EO, the tariff on cereals from India would then be automatically raised to 32.9%, to match the tariff imposed on America by India.

The campaign website explains that the intent of this law is to negotiate with other countries to lower their tariff rates on U.S. goods. Therefore, U.S. tariff rates would likely lower automatically as foreign tariffs lower as well. Using the example of cereals from India, under this law if India were to lower the rate to 25%, the U.S. rate would also lower to 25%.

We handle a panoply of tariff related matters, including requests for tariff exclusions and related litigation. As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions.  If you seek strategic counsel and insight into how these changes could affect your operations, we invite you to contact us to schedule a consultation.