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Proc 10328ProclamationBiden · D Quiet signal

Proclamation 10328

Adjusting Imports of Steel Into the United States

This proclamation replaces the 25 percent tariff on EU steel imports with a tariff-rate quota system allowing 3.3 million metric tons of EU steel to enter duty-free through December 31, 2023, provided the steel is melted and poured in the EU. It also renews FY2021 exclusions for two years, mandates a review of the steel and aluminum exclusion process, and requires U.S.-EU negotiations on global steel and aluminum arrangements by October 31, 2023.

Federal Register Open PDF 87 FR 11

Impact dates

  1. Secretary issues final rule implementing exclusion process changes

  2. Secretary issues proposed regulation revising exclusion process

  3. EU steel tariff-rate quota expires

  4. U.S.-EU negotiations on global steel and aluminum arrangements due

  5. Secretary publishes Federal Register notice seeking comments on exclusion process

  6. Tariff-rate quota effective for EU steel imports; HTSUS modifications effective

Key directives

  • Establish tariff-rate quota of 3.3 million metric tons for EU steel imports through December 31, 2023
  • Require steel to be melted and poured in EU to qualify
  • Renew FY2021 exclusions for 2 years with same annual volumes
  • Publish Federal Register notice on exclusion process within 45 days
  • Issue proposed regulation revising exclusion process within 60 days after comment period closes
  • Issue final rule within 60 days after comment period on proposed regulation
  • Establish process to help U.S. consumers identify suppliers in partner countries
  • Regularly publish exclusion volume data on Commerce Department website
  • Negotiate global steel/aluminum arrangements with EU by October 31, 2023

Who is ordered

Timeline

Immediate

  • Tariff-rate quota effective January 1, 2022 for EU steel imports
  • FY2021 exclusions renewed for 2 years from December 27, 2021

Near term (90d)

  • Secretary of Commerce must publish Federal Register notice seeking comments on exclusion process within 45 days (by ~February 10, 2022)

Long term

  • U.S.-EU negotiations on global steel/aluminum arrangements due by October 31, 2023
  • Tariff-rate quota expires December 31, 2023 unless extended
  • Proposed regulation on exclusion process due within 60 days after comment period closes
  • Final rule due within 60 days after comment period on proposed regulation

Risks & tensions

  • EU quota volume may be insufficient during demand surges, causing price spikes
  • 'Melted and poured in EU' rule creates compliance enforcement challenges and transshipment risks
  • Tight regulatory timeline (45/60/60 days) over holidays may strain administrative capacity
  • Renewal of exclusions without market re-testing may perpetuate outdated supply assumptions
  • Potential WTO challenge to tariff-rate quota as disguised restriction
  • Uncertainty about post-December 2023 arrangement creates investment hesitation
Proclamation 10328: Adjusting Imports of Steel Into the United States · Executive Orders