ExecutiveOrdersEO
Proc 9740ProclamationTrump 45 · R Quiet signal

Proclamation 9740

Adjusting Imports of Steel Into the United States

This proclamation modifies steel tariffs imposed under Section 232 by permanently exempting South Korea (replacing tariffs with a quota), indefinitely extending temporary exemptions for Argentina, Australia, and Brazil while alternative agreements are finalized, and extending the temporary exemption for Canada, Mexico, and EU member countries until June 1, 2018, after which the 25% tariff will apply absent further agreements. It also amends the Harmonized Tariff Schedule and foreign trade zone treatment rules.

Federal Register Open PDF 83 FR 20683

Impact dates

  1. Argentina, Australia, Brazil alternative measures to be finalized shortly or tariff may be re-imposed

  2. CBP to implement South Korea quota as soon as practicable

  3. Secretary to publish HTSUS modifications in Federal Register

  4. 25% tariff takes effect for Canada, Mexico, and EU member countries unless alternative agreement reached

Key directives

  • Exempt South Korea from 25% steel tariff, implement quota via amended HTSUS U.S. Note 16
  • Extend Argentina, Australia, Brazil exemptions indefinitely pending finalization of alternative measures
  • Extend Canada, Mexico, EU exemptions until 12:01 a.m. EDT June 1, 2018
  • Apply 25% tariff to Canada, Mexico, EU starting June 1, 2018 absent satisfactory alternative agreement
  • CBP to implement South Korea quota as soon as practicable, counting imports since January 1, 2018
  • Secretary of Commerce to revise HTSUS and publish modifications in Federal Register
  • Amend Proclamation 9711 clause 5 regarding foreign trade zone 'domestic status' treatment
  • No drawback available on Section 232 steel duties

Who is ordered

Timeline

Immediate

  • South Korea exempted from 25% tariff, subject to quota instead
  • Argentina, Australia, Brazil exemptions extended without expiration date
  • Canada, Mexico, EU exemptions extended through May 31, 2018

Near term (90d)

  • June 1, 2018: 25% tariff takes effect for Canada, Mexico, and EU unless alternative agreement reached
  • HTSUS revisions to be published by Secretary of Commerce

Long term

  • Monitoring of South Korea quota implementation
  • Potential re-imposition of tariffs on Argentina, Australia, Brazil if agreements not finalized
  • Possible further country-specific adjustments based on ongoing negotiations

Risks & tensions

  • Trade war escalation risk with EU, Canada, Mexico if June 1 tariff deadline not averted
  • Vague 'shortly' timeline for Argentina/Australia/Brazil creates uncertainty for importers
  • Quota implementation complexity with retroactive January 1, 2018 counting basis
  • Foreign trade zone 'domestic status' amendment may disrupt existing supply chain arrangements
  • National security justification for tariffs remains contested internationally
Proclamation 9740: Adjusting Imports of Steel Into the United States · Executive Orders