The Secretary of Commerce reported on the effect of imports of steel mill articles on the national security of the U.S. under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862). The Secretary found that steel articles are being imported into the U.S. in such quantities and under such circumstances as to threaten to impair the national security of the U.S.
In Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the U.S. ), the Secretary’s finding that steel articles, as defined in Clause 1 of Proclamation 9705 (as amended by Clause 8 of Proclamation 9711 of March 22, 2018 (Adjusting Imports of Steel Into the U.S.), are being imported into the U.S. in such quantities and under such circumstances as to threaten to impair the national security of the U.S. and then decided to adjust the imports of steel articles by imposing a 25 percent ad valorem tariff on such articles imported from all countries except Canada and Mexico. Proclamation 9705 further stated that any country with which the U.S. has a security relationship is welcome to discuss alternative ways to address the threatened impairment of the national security caused by imports from that country. Also noted, should the U.S. and any such country arrive at a satisfactory alternative means to address the threat to the national security such that it was determined imports from that country no longer threaten national security, the restriction could be removed or modified on steel articles imports from that country and, if necessary, adjust the tariff as it applies to other countries, as national security interests of the U.S. require.
Accordingly, the U.S. will implement a melt and pour requirement for imports of steel articles that are products of Mexico and increase the section 232 duty rate for imports of steel articles and derivative steel articles that are products of Mexico and melted and poured in a country other than Mexico, Canada or the U.S. In order to be eligible for importation free from section 232 tariffs, steel articles and derivative steel articles that are products of Mexico must be melted and poured in Mexico, Canada, or the U.S. These measures will provide an effective, long-term alternative means to address any contribution by Mexican steel articles imports to the threatened impairment of the national security by restraining steel articles imports to the U.S. from Mexico, limiting transshipment, and discouraging excess steel capacity and production. The U.S. will monitor the implementation and effectiveness of the measures agreed upon with Mexico in addressing national security needs, and this determination could be revisited in the future.