Section 232 tariffs to spark major shifts for the recycled metals community

The Section 232 tariffs, initially imposed by the Trump administration in 2018 to protect U.S. steel and aluminum industries, have undergone significant revisions under the Biden administration. These tariffs were designed to bolster national security by reducing dependency on foreign metals.

1. Revised exclusion process: Effective July 1, 2024, the Bureau of Industry and Security (BIS) revised the Section 232 exclusions process, removing 12 General Approved Exclusions (GAEs)—six for steel and six for aluminum. This move aims to reduce reliance on foreign manufacturing and strengthen domestic production capabilities.
2. New tariff policies: In April 2024, President Joe Biden announced measures to counteract unfair Chinese trade practices. These include increasing Section 301 tariffs on Chinese steel and aluminum to 25%, initiating investigations into Chinese maritime sectors, and enhancing efforts to prevent the misrepresentation of Chinese-origin steel transshipped through Mexico. Additionally, tariffs on EVs and lithium-ion EV batteries were significantly increased.
3. Reimposition on South American imports: The U.S. has reinstated Section 232 tariffs on steel and aluminum imports from South America to protect the domestic market, specifically targeting products from Brazil and Argentina.