The U.S. Announces Termination Of Additional Duties On Steel And Aluminum From Canada And Mexico


By Pacific Customs Brokers, Pacific Customs Brokers 2019-05-21

On May 20th, 2019, the U.S. agreed to remove the tariffs imposed by the U.S. government, under section 232 of the Trade Expansion Act, with regard to steel and aluminum products originating in Canada and Mexico.

In return, Canada has agreed to remove retaliation Surtaxes imposed on certain products originating in the United States.

In addition to eliminating the surtaxes, both countries agreed to terminate all pending litigation between them in the World Trade Organization regarding the section 232 action.

Both countries have agreed to monitor steel and aluminum trade between them to prevent the importation of unfairly subsidized, dumping and/or transshipment of aluminum and steel products.

If imports surge beyond historic volumes over a period of time the countries agree to enter into consultations with the offending country. After consultations, the importing party may reinstate the additional duties with respect to the individual products where the surge took place. If the importing country does take such action, the exporting country agrees to retaliate only with respect to the same products.

What Does This Mean For Your Imports

Duty rates will return back to normal for your shipments, and in turn, reduce the landed cost on imports of steel and aluminum.

If Customs issued you a notice to increase your Continuous Bond amount, your requirement for an increased bond amount may go down. However, both Resident Importers and Non-Resident Importers, who import steel and aluminum into the U.S., may not be able to reduce their bond immediately. U.S. Customs & Border Protection determines your required bond amount on the previous 12 months of import activity. Although you can ask for a reduction in your bond amount, it many not be granted until the next bonding period.

What Is Your Best Course Of Action?

Contact Pacific Customs Brokers ([email protected]) and speak with an experienced Trade Advisor. They may be able to assist you with lowering the amount on your continuous bond.


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