The President of the United States has issued a significant proclamation aimed at addressing the pressing concerns regarding the importation of steel mill articles, commonly referred to as steel articles, into the United States.
This proclamation follows a report received on January 11, 2018, from the Secretary of Commerce, who conducted an extensive investigation into the impacts of steel imports on the national security of the United States.
The Secretary found that steel articles are being imported in quantities and under circumstances that threaten to impair national security.
In March 2018, Proclamation 9705 was established, which imposed a 25 percent ad valorem tariff on steel articles imported from most countries.
This action was taken to mitigate the risk to national security posed by these imports.
The Proclamation allowed countries with security relationships with the U.S. to negotiate alternative solutions to the tariff.
If satisfactory arrangements were achieved, the President had the discretion to modify the restrictions on imports from those nations.
In subsequent proclamations, updates were made regarding agreements with various countries like Argentina, Australia, Brazil, Canada, Mexico, and South Korea.
Furthermore, President Biden acknowledged a close relationship with Ukraine by exempting steel articles from tariffs due to the ongoing conflict in the region.
As the years progressed, however, the administration noted that the initial effectiveness of the 25 percent tariff had begun to wane, with increased imports from countries exempted or subjected to other agreements.
In particular, imports from Canada saw an 18 percent increase after being excluded from the Section 232 tariffs, and global steel excess capacity is projected to rise to around 630 million metric tons by 2026.
The United States saw nearly 30 percent of its steel consumption sourced from imports in 2024, reminiscent of the levels reported in 2018.
Countries that reached agreements with the U.S. faced significant increases in their share of total imports, which rose from 74 percent in 2018 to 82 percent in 2024.
Domestic steel industries observed depressed performance due to high import volumes, resulting in decreased capacity utilization rates.
Among the most concerning developments was a surge in imports from Canada and Mexico, with volumes reaching levels that once again threatened national security.
The Secretary of Commerce reported that imports from Canada and Mexico increased significantly, leading to concerns about the impact on domestic steel producers.
Import markets have also been distorted by global dynamics, including excess capacity exacerbated by practices in countries like China.
The effectiveness of agreements with trading partners has come under scrutiny as steel imports from these nations have increased significantly over recent years, undermining national security.
Further complicating these challenges, the temporary exemption for steel imports from Ukraine has reportedly not benefitted the intended producers within Ukraine, instead aiding EU producers.
As a response to the Secretary’s findings, the President has determined that the previously established arrangements with various countries have not effectively mitigated the threats posed by steel imports.
As of March 12, 2025, all steel article imports from Argentina, Australia, Brazil, Canada, EU countries, Japan, Mexico, South Korea, the United Kingdom, and Ukraine will once again be subject to the additional ad valorem tariffs under Proclamation 9705 and Proclamation 9980.
The President expressed that these modifications are essential in addressing the increasing share of imports and reinforcing national security objectives.
Alterations also extend to derivative steel articles, with additional categories being brought under the same tariff umbrella effective March 12, 2025.
Future agreements will no longer maintain product exclusions, ensuring that the objectives set forth by the Secretary’s 2018 report are actively pursued.
To facilitate transparency and proper monitoring, the Secretary has ordered importers to provide information concerning the steel content used in manufactured articles.
The measure aims to prevent misclassification and tax evasion, tightening scrutiny on steel imports to safeguard national interests.
As the situation evolves, the Secretary has the authority to revise the Harmonized Tariff Schedule of the United States to align with the provisions outlined in the proclamation.
In summary, this new proclamation reflects a decisive move by the Biden administration to bolster domestic steel production and address overarching national security concerns related to steel imports.
The implications of this policy shift will reverberate throughout the steel industry, impacting both domestic producers and foreign competitors in the global market.
In the coming months, businesses will be required to adapt to these significant changes, shaping the future landscape of steel imports within the United States.
image source from：https://www.whitehouse.gov/presidential-actions/2025/02/adjusting-imports-of-steel-into-the-united-states/
