On May 2, 2025, the U.S. Department of Commerce (“Commerce”) issued an interim final rule (“IFR”) that creates a new process for adding goods to the lists of derivative products subject to the 25 percent steel and aluminum tariffs under Section 232 of the Trade Expansion Act of 1962, as amended (“Section 232 Steel and Aluminum Tariffs”). The Section 232 Steel and Aluminum Tariffs apply to designated articles by reference to the Harmonized Tariff Schedule of the United States (“HTSUS”) number, and for steel and aluminum derivative products outside HTSUS number 73 and 76, respectively, the tariffs are calculated based on the value of the steel and/or aluminum content in the foreign-origin article at issue. The new “Inclusions Process” will be administered by the Bureau of Industry and Security (“BIS”). Requests to include goods on the derivative products lists may be filed with BIS during three windows that will be opened each year. The first request period is now open and will run through May 15, 2025.
Background
In 2018, President Trump imposed Section 232 tariffs on certain steel and aluminum imports after Commerce determined that such imports were threatening to impair U.S. national security. In 2020, the Section 232 tariff actions were applied to imports of identified derivative steel and aluminum articles (by reference to the applicable HTSUS code). The Section 232 steel tariffs were set at 25 percent ad valorem and the Section 232 aluminum tariffs initially were set at 10 percent ad valorem.
On February 10, 2025, the President issued Proclamation 10895, “Adjusting Imports of Aluminum Into the United States,” and Proclamation 10896, “Adjusting Imports of Steel Into the United States,” to further modify the Section 232 Steel and Aluminum Tariffs. The announced revisions included:
- terminating the pre-existing product exclusions process;
- increasing the aluminum tariffs to 25 percent ad valorem;
- subjecting additional derivative steel and aluminum articles to the tariffs; and
- directing the Secretary of Commerce to establish a process for subjecting additional derivative articles to the Section 232 Steel and Aluminum Tariffs.
Inclusions Requests Process
Under the new process, new HTSUS codes for steel and aluminum derivative articles may become subject to the tariffs in one of three ways: (1) through action by Commerce; (2) at the request of U.S. producers of steel or aluminum articles, or of U.S. producers of derivative articles; or (3) at the request of an industry association representing one or more U.S. producers. The requesting party must “establish that imports of a derivative article have increased in a manner that threatens to impair the national security of the United States or otherwise undermine the objectives” of the tariff actions. The Secretary of Commerce must then determine whether to grant Inclusions Requests within 60 days.
Under the new process, there will be three Inclusions Requests filing periods per year, which will open in May, September, and January.
The IFR specifies several requirements for Inclusions Requests, including:
- a precise definition of the derivative article;
- the HTSUS classification number of the article;
- details on the steel or aluminum derivative article, including “information on the total value of the article’s steel and/or aluminum content as a share of the derivative article’s total value”;
- pertinent information on the domestic industry affected;
- statistics on imports and domestic production; and
- an explanation of how the derivative article threatens to impair the national security or otherwise undermines the objectives of the Section 232 Steel and Aluminum Tariffs.
Inclusions Requests will be subject to a two-week public comment period that commences at the end of the request window.
Within 60 days of receiving the request, BIS will publish a determination memorandum that: (1) states whether the request was approved or denied; and (2) summarizes the rationale for making this determination. The tariffs will apply to the newly covered derivative articles after the official notification is published in the Federal Register.
Comments on the Interim Final Rule
BIS also requested public comments on the IFR. Comments on the IFR are due by June 16, 2025.
