Thunderbolt Global Logistics Information about New Tariffs by the Trump Administration

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March 4, 2024

Today is the day that new tariffs from Canada, Mexico and China are in effect.    All imports from Canada will now have an additional 25% tariff with the exception of energy imports which will be at 10%.  Imports from Mexico will have an additional 25% tariff on all imports with no exceptions.    An additional 10% tariff on imports from China are now in effect.   This is on top of 10% tariffs that went into effect February 4,2025.   Here are some links to follow.

Mexico               Canada                China and Hong Kong

This is the official statement from The White House last month.

The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).

  • Until the crisis is alleviated, President Donald J. Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.  Energy resources from Canada will have a lower 10%

These tariffs will remain in place until President Trump feels that each country is doing what is necessary to stop the influx of fentanyl into the U.S.A.   Until then uncertainty reigns and the impact on the economy will be felt immediately.

The increase in tariffs will lead to higher costs for the American public and will create inflationary pressure on the economy.  It’s a policy that has not worked historically.

The steel and aluminum tariffs that are proposed go into effect at 12:01 Eastern Time on March 12th from all countries around the world with no exceptions.

On February 10, 2025, President Trump issued two proclamations – Adjusting Imports of Aluminum into the United States and Adjusting Imports of Steel into the United States – modifying the steel and aluminum tariffs that he had originally imposed in 2018 under Section 232 of the Trade Expansion Act of 1962.

The new action expands the original Section 232 tariffs by (i) ending all country exemptions, phasing out the specific product exclusion process, and terminating all existing General Approved Exclusions (GAEs); (ii) raising the aluminum tariffs from 10% to 25%; (iii) adding more downstream steel and aluminum products to the tariffs’ coverage; (iv) and creating an exemption process for imported derivative articles made from steel “melted and poured” and aluminum “smelted and cast” in the United States.

The Federal Register notices on Steel and Aluminum will be published on March 5. They are available today for review and we have attached them for your reference.

In summary,

Steel

March 12 is the effective date for 25% tariffs on the original steel products and derivatives plus the NEW list of derivative products classified in HTS Chapter 73

  1. The effective date for 25% tariffs on NEW derivative steel products listed but not classified in HTS Chapter 73 will be determined by the Secretary of Commerce when a system is in place to collect the duties on those product. The additional duty shall only apply to the declared value of the steel content of the derivative article. The quantity of the steel content shall be report in KG.
  2. All Imports of derivative products shall provide any information that may be required by Customs and Border Protection (CBP) to permit administration of the duties.

A duty exemption applies ONLY to the NEW list of derivative products provided the product was processed in another country from steel articles that were melted and poured in the U.S.  N.B. this same exemption does not apply to steel articles and derivatives on the ORIGINAL lists.

Aluminum

March 12 is the effective date for 25% tariffs on the ORIGINAL aluminum products and  derivatives plus the NEW list of derivative products classified in HTS Chapter 76.

  1. The effective date for 25% tariffs on NEW derivative steel products listed but not classified in either HTS Chapter 76 will be determined by the Secretary of Commerce when a system is in place to collect the duties on those product. The additional duty shall only apply to the declared value of the aluminum content of the derivative article. The quantity of the aluminum content shall be report in KG.
  2. Note that importers are required to report to CBP the primary country of smelt, secondary country of smelt, and country of cast on imports of all aluminum articles subject to the aluminum and aluminum derivatives Section 232 measures. In addition, all Imports of derivative products shall provide any information that may be required by CBP to permit administration of the duties.
  3. A duty exemption applies ONLY to the NEW list of derivative products provided the product was processed in another country from aluminum articles that were smelted and cast in the U.S. NB. this same exemption does not apply to aluminum articles and derivatives on the ORIGINAL lists.
  4. If the products are from Russia, or any amount of primary aluminum use to make the article is smelted in Russia or cast in Russia, it is subject to 200% tariffs. In addition, the same exemptions under HTS Chapter 98 do not apply the same way as to other origin goods.

The President could change his mind and delay these tariffs but it’s unlikely.   These tariffs will add more cost for manufacturers in the United States that use foreign steel and aluminum in their manufacturing process.     Again, the consumer will ultimately pay for most of the tariff increases as prices for goods and services will go up.     With these higher duties we may require advance payment of duties if an importer does not have their own ACH account with U.S. Customs.  We suggest that importers with commodities that fall under these tariffs pay their duties direct to U.S. Customs.

We will continue to monitor the situation closely.   If you have any questions please send a message to compliance@thunderboltglobal.com

Thank you very much.