The U.S. will issue tariff rate quotas (TRQs) on imported steel and aluminum products, starting January 1, 2022. These quotas will allow limited amounts of EU steel and aluminum products to be entered into the U.S. free of Section 232 tariffs—which adds a 25 percent tariff on steel and 10 percent on aluminum imports.
For European steel, the quota will cover 54 product categories, with an annual 3.3 metric ton limit, however, the products that are currently covered by Section 232 exclusions will not count against this quota. The Commerce Department has announced that those exclusions will automatically renew through the end of 2023. For both steel and aluminum, derivative products will no longer be subject to tariffs or quotas.
All products entered under this quota must be certified as melted and poured in the EU. As with South Korea’s quota, the TRQ will be administered quarterly. Up to 4% of unused quota from the first quarter can roll over to the third quarter and up to 4% of unused quota from the second quarter can roll over to the fourth quarter. Unused quota from the third quarter, up to 4%, again, can roll over to the first quarter of the following year.
For aluminum, the U.S. will issue TRQs twice a year, and up to 60% of the annual volume can be imported in the first half of the year. The tariff-free quota is 18,000 metric tons for unwrought aluminum, under two product categories, and 366,000 metric tons for semi-finished aluminum, under 14 product categories.
If you have questions about these quotas or the exclusions, please reach out to your Mohawk Global representative.