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US announces new 25% tariffs on aluminum imports

Date of update: March 5th, 2025
On February 10, 2025, President Trump signed a Proclamation that is a continuation, and expansion, of the 10% tariffs on aluminum products initiated in 2018 via Presidential Proclamation 9704. This increases the current 10% tariff to 25%. This was done by asserting authority under Section 232 of the Tariff Act of 1964 (19USC 1862). The effective date of this change is 12:01 a.m. eastern time on March 12, 2025. These rates of duty are in addition to any other duties, fees, exactions, and charges applicable to such imported aluminum and derivative aluminum articles.
In order to implement these modifications to the duty rate on imports of aluminum articles, subchapter III of chapter 99 of the HTSUS will be modified as provided in the Annex I to this proclamation set out in the Federal Register notice and any subsequent proclamations regarding such aluminum articles.
A Fact Sheet was provided by the White House providing high-level information.

How this will change existing aluminum tariffs

Section 232 aluminum tariffs that came into effect in 2018 will be amended in a number of key aspects as follows:
  • Effective 12:01 Eastern on March 12, 2025, existing exclusions and country specific agreements will no longer apply. The additional 25% ad valorem tariffs will apply to all aluminum and derivative aluminum products.
  • Country exemptions will no longer exist – the tariff will apply regardless of country of origin
  • The aluminum tariff for Russia will remain at 200% as previously established in Presidential Proclamation 10522.
  • The exclusion process with Bureau of Industry and Security (BIS) will not exist going forward. Any existing exclusions will be allowed to continue until their expiration date or the product volume associated with that exclusion is filled, whichever occurs sooner. Additionally, any existing General Approved Exclusions will be terminated.
  • The aluminum derivative list will noticeably expand and is identified in the published Annex I. For these products, only that portion of the item consisting of aluminum will be subject to the tariff. This broadening will not apply where the aluminum has been melted and poured in the US.
    • Importers will be required to provide CBP with whatever information necessary to identify the aluminum content "used" in the manufacture of aluminum derivative products within scope, with CBP obligated to "implement the information requirements as soon as practicable."
    • Guidance as to how any amount of aluminum contained within listed derivative products is to be calculated and/or supported has not been provided.
  • No Drawback will be allowed.
  • For Foreign Trade Zones (FTZ), any entry of aluminum or aluminum derivative products into a FTZ must be in privileged foreign status (except for products eligible to enter the FTZ in domestic status). For aluminum products, the only zone reference is to any aluminum or aluminum derivative articles admitted after the Commerce certification date after which time only a PF designation may be made. There is no reference to goods entered prior to the proclamation effective date.
  • The White House has directed the Secretary of Commerce to develop, within 90 days after publication of the proclamation in the Federal Register, a mechanism that will allow producers to request Commerce to expand the list of aluminum derivative products (i.e., subject to the additional 25% duties/tariffs).
important
The proclamation directs CBP to “prioritize reviews of the classification of imported aluminum articles and derivative aluminum articles and, in the event that it discovers misclassification resulting in non-payment of the ad valorem duties proclaimed herein, it shall assess
monetary penalties in the maximum amount permitted by law and shall not consider any evidence of mitigating factors in its determination
. In addition, CBP shall promptly notify the Secretary regarding evidence of any efforts to evade payment of the ad valorem duties proclaimed herein through processing or alteration of aluminum articles or derivative aluminum articles prior to importation. In such circumstances, the Secretary shall consider the processed or altered aluminum articles or derivative aluminum articles for inclusion as derivative aluminum articles pursuant to clause 5 of this proclamation.”

Current aluminum tariffs (2018-2024 proclamations)

The existing Section 232 tariffs of 10% are specifically applied to commodities listed in Subchapter III of Chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS). Whether the current 25% tariff applies is directly related to the product description and classification. Those items are identified as follows and will require the importer to declare HTSUS subheading 9903.85.02 at time of entry:
  1. unwrought aluminum provided for in heading 7601.
  2. bars, rods and profiles provided for in heading 7604; wire provided for in heading 7605.
  3. plates, sheets and strip provided for in heading 7606; foil provided for in heading 7607.
  4. tubes, pipes and tube or pipe fittings provided for in heading 7608 and 7609.
  5. castings and forgings of aluminum provided for in subheading 7616.99.51.
Additionally, the following derivative aluminum products are included from the original Section 232 investigation and will require the importer to declare HTSUS subheading 9903.85.04 at time of entry:
  1. stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and with steel core, not electrically insulated; the foregoing fitted with fittings or made up into articles (described in subheading 7614.10.50).
  2. stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing comprising electrical conductors, not fitted with fittings or made up into articles (described in subheading 7614.90.20).
  3. stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing not comprising electrical conductors, not fitted with fittings or made up into articles (described in subheading 7614.90.40).
  4. stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing fitted with fittings or made up into articles (described in subheading 7614.90.50).
  5. bumper stampings of aluminum, the foregoing comprising parts and accessories of the motor vehicles of heading 8701 to 8705 (described in subheading 8708.10.30).
  6. body stampings of aluminum, for tractors suitable for agricultural use (described in subheading 8708.29.21).
For newly designated aluminum derivative products classified in Chapter 76 of the HTSUS (i.e., the 19 different tariff codes listed in the newly created Note 19(j) to Subchapter III of Chapter 99 of the HTSUS), importers must declare
HTSUS subheading 9903.85.07
 to pay the 25%.
For the aluminum derivative products that are classified outside of Chapter 76 of the HTSUS (i.e., in one of the new 100+ HTSUS subheadings outside of Chapter 76 identified as aluminum derivatives), importers must declare
HTSUS subheading 9903.85.08
to pay the aluminum tariffs.
However, the 25% duty on these products will not be in effect until the Commerce Department publishes further guidance.
For any derivative aluminum product that is classified in one of the HTSUS provisions listed in this subdivision, the additional ad valorem duty imposed by heading 9903.85.08 shall only apply to the declared value of the aluminum content of the derivative article. The quantity of the aluminum content shall be reported in kg for heading 9903.85.08, in addition to the units provided in chapters 1 through 97 for the derivative aluminum article, in accordance with Statistical Note 1(b) of Chapter 99.
Although certain aluminum derivative articles that are processed in another country using aluminum articles smelted and cast in the United States are exempt from the 25% tariffs, the Commerce Department will be tracking such imports by requiring importers to nevertheless also declare them under
HTSUS subheading 9903.85.09
.
In the case of the existing tariffs on aluminum, the origin of the aluminum was also a determining factor as numerous countries had negotiated exemptions to the tariffs. Those countries included
Australia, Argentina, Canada, Mexico, the European Union, and the United Kingdom
. These country exemptions will no longer be effective.
The prior Trump administration had set up an exclusion process that provided a way for companies to request and obtain exclusions on certain aluminum products. This tool was used by a large number of companies to get relief as needed from the tariffs. Exclusions will no longer be an option.

Next steps

Based on these latest updates, it will be imperative for companies to conduct thorough due diligence on their products to ensure proper classification. With the increased exposure to penalties for non-compliance, and an enforcement focus by CBP on this area, a classification database that is complete and accurate as the single source of truth, will position companies to conduct quick analysis to identify products and suppliers that are exposed to higher risk in this area.
To learn more about how the ONESOURCE Global Trade suite of tools and services can help businesses analyze potential impacts, explore alternative sourcing options, and optimize their trade operations to mitigate risks and capitalize on potential advantages, please contact your Account Manager or Customer Success Manager.