ExecutiveOrdersEO
Proc 9980ProclamationTrump 45 · R Quiet signal

Proclamation 9980

Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles Into the United States

This proclamation expands existing Section 232 tariffs on aluminum (10%) and steel (25%) to cover derivative articles—specific downstream products like steel nails, aluminum wire/cables, and auto body stampings—effective February 8, 2020. The action aims to prevent circumvention of the original 2018 tariffs by foreign producers who had shifted to exporting finished derivative products instead of raw metals.

Federal Register Open PDF 85 FR 5281

Impact dates

  1. Tariffs on derivative aluminum and steel articles take effect; foreign trade zone status rules apply

Key directives

  • Impose 10% ad valorem tariff on derivative aluminum articles and 25% on derivative steel articles effective February 8, 2020
  • Secretary to monitor imports and review status with USTR
  • Secretary authorized to extend tariffs/quotas to excepted countries in event of import surge with USTR concurrence
  • Secretary authorized to grant exclusions for insufficient domestic supply or national security considerations upon request by directly affected U.S. parties
  • Foreign trade zone admission restricted to 'privileged foreign status' for affected derivative articles
  • No drawback permitted on imposed duties
  • Secretary to revise HTSUS and publish modifications in Federal Register
  • Supersede inconsistent provisions of prior proclamations and Executive Orders

Who is ordered

Timeline

Immediate

  • Tariffs on derivative articles take effect February 8, 2020 at 12:01 a.m. EST
  • Foreign trade zone status rules change for derivative articles
  • Drawback elimination on affected duties

Near term (90d)

  • Secretary of Commerce to revise HTSUS and publish in Federal Register
  • Monitoring of import surges from excepted countries begins
  • Exclusion request process opens for directly affected U.S. parties

Long term

  • Ongoing monitoring and potential extension of tariffs/quotas to excepted countries if surge occurs
  • Potential voluntary restraint agreements negotiated with trading partners
  • Continued assessment of domestic capacity utilization targets (80% steel, aluminum target levels)

Risks & tensions

  • Escalation of trade disputes with affected countries
  • Retaliatory measures from trading partners
  • Supply chain disruptions for U.S. manufacturers dependent on imported derivative products
  • Administrative burden of exclusion request process
  • Potential WTO challenges to Section 232 expansion
  • Erosion of foreign trade zone benefits for certain operations
Proclamation 9980: Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles Into the United States · Executive Orders