Trade Cases
Section 232 Adds Nearly $2 Billion to Gov't Coffers in FY20
Written by Michael Cowden
February 8, 2021
Section 232 tariffs on imported steel and aluminum netted the U.S. government nearly $2 billion in its 2020 fiscal year.
U.S. Customs and Border Protection (CBP) collected $1.3 billion in Section 232 tariffs on imported steel in fiscal 2020 and $500 million in tariffs on imported aluminum, according to a recent report from the agency.
The federal government’s fiscal 2020 began on Oct. 1, 2019, and ran through Sept. 30, 2020.
All told, CBP has collected nearly $7.52 billion in Section 232 steel tariffs and approximately $2.36 billion in alumium tariffs since the trade measure took effect on March 23, 2018, according to data updated each week by the agency.
Most countries face duties of 25% on steel imports and 10% on aluminum imports. Argentina, Australia, Brazil, Canada, Mexico and South Korea are exempt from Section 232 tariffs.
CBP also oversees collections stemming from other non-traditional trade actions such as Section 201 duties on washing machines, washing machine parts, and solar panels, as well as Section 301 on goods from China.
“Despite the pandemic, CBP collected $74.4 billion in duties, a 3.5 percent increase over FY2019,” the report said, noting that much of the increase came thanks to Sections 232, 201 and 301.
Section 201 netted the government more than $900 million in its last fiscal year and roughly $2.35 billion since taking effect on Feb. 7, 2018. The majority of Section 201 duties–$2.09 billion, or 88% of the total– stem from duties on solar panels. Canada is exempt from the measure.
The bulk of all tariffs collected by CBP result from Section 301 duties on China. Section 301 on Chinese goods brought $35.6 billion into government coffers in fiscal 2020–or approximately 48% of the $74.4 billion collected in the last fiscal year thanks to the three Sections.
Section 301 was rolled out July 6, 2018, per CBP, but did not take effect in significant terms until 2019.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Trade Cases
Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.
Commerce tags UAE with ‘critical circumstances’ in CORE trade case, South Africa spared
The Commerce Department has made a preliminary determination that ‘critical circumstances’ exist for certain imports of corrosion-resistant (CORE) flat-rolled steel from the United Arab Emirates (UAE). Commerce decided that critical circumstances did not apply to CORE from South Africa. The department also found that critical circumstances did not apply to CORE from UAE producers Al-Ghurair Iron & Steel LLC and United Iron & Steel Company LLC.
Trump’s ‘Liberation Day’ brings 10% baseline tariffs; steel, aluminum, and autos/parts excluded
President Trump’s promised “Liberation Day” has arrived, with a 10% minimum tariff on imports. But there are some very important exceptions: The United States’ USMCA partners, Canada and Mexico, are excluded from the reciprocal tariffs for now. In addition, steel, aluminum, as well as autos and auto parts are excluded from the reciprocal tariffs. That’s […]
Price on Trade: Auto tariffs, auto parts, and Hyundai – a world of rapid changes
Trump's new auto tariffs will apply to passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans), light trucks, and certain automobile parts (including engines and engine parts, transmissions and powertrain parts, and electrical components).
CRU: Canacero urges Mexico-US partnership to fend off Asian steel imports
Victor Cairo, head of Mexico’s steel sector body Canacero and CEO of ArcelorMittal Mexico, says he is confident negotiations between the Mexican and US governments planned for April 2 will lead to the creation of a regional block to substitute imports, especially from Asia.