Updated CSMS Guidance on Steel and Derivatives
One June 24, 2025 CBP published updated guidance via a CSMS Message on Section 232 tariffs, correcting the number for preexisting HTSUS subheading 9903.81.98. The change effects steel or iron derivative items imported from the United Kingdom.
Additionally, the CSMS Message added certain steel imports in Chapters 84, 85, and 94 of the HTSUS, including combined refrigerator-freezers, dryers, washing machines, dishwashers, freezers, cooking stoves, food waste disposals, and welded wire racks to the Section 232 tariffs. These products are classified under specific HTSUS subheadings and are subject to additional duties based on their steel content. The guidance outlines specific HTSUS numbers for reporting these duties, with varying rates for different countries, including a 50% duty for most and 25% for the UK. No drawback is available for these duties. For additional information on how these duties may impact your business, please contact the Husch Blackwell International Trade Team.
U.S. and China Reach a Truce, 10 Deals With Other Nations Are In The Works
Commerce Secretary Howard Lutnick announced that the United States and China have come to an understanding surrounding rare earth minerals and magnet shipments to the U.S. The two countries discussed the issue in Geneva last month, but Treasury Secretary Scott Bessent stated on June 27 that he is “confident . . . the magnets will flow” as a result of this agreement. The “understanding” refers to an agreement on the framework to implement the terms agreed to in Geneva and includes China’s commitment to deliver rare earth materials, crucial for various industries. While it’s an important milestone for U.S.-China trade relations, this agreement is not a comprehensive trade deal and does not address complex issues such as fentanyl trafficking and American exporters’ access to Chinese markets.
Additionally, Secretary Lutnick stated that the White House plans to finalize agreements with ten major trading partners in the coming two weeks, though he did not mention which nations were party to those agreements. Countries who have yet to make a deal with the United States on July 9, when the pause on higher reciprocal tariffs expires, will be sorted into the “proper buckets” and sent letters dictating trade terms as stated by Secretaries Bessent and Lutnick, as well as White House Press Secretary Karoline Leavitt. The trade deals are expected to be categorized, with some countries fitting into a secondary group for further negotiations. However, it remains unclear how comprehensive these trade deals will be.
Commerce Accepting Requests to Add Auto Parts to Section 232 Tariffs Starting July 1
The U.S. Department of Commerce’s International Trade Administration (“ITA”) has introduced new procedures for adding automobile parts to the 25% tariffs under Section 232. This initiative aims to protect U.S. national security interests related to automobiles. Following President Trump’s March 26, 2025, proclamation, domestic producers can request additional parts to be included in the tariffs. The process will be published in the Federal Register, with submission windows opening four times a year for two weeks at a time. Requests will be reviewed and non-confidential versions posted for public comment, ensuring transparency. The public comment period for these requests will be 14 days. Submissions must include detailed information about the parts and their impact on national security including:
- Applicant identification
- Description of the requested auto part article
- Eight or ten-digit HTSUS classification requested for tariff inclusion
- Explanation of why the article is an auto parts article
- Information on the domestic industry affected
- Statistics on imports and domestic production; and
- Description of how and to what extent imports of the article have increased in a manner that threatens to impair national security or undermine Section 232 automobile tariff objectives.
Submissions must be made through regulations.gov and the ITA will make determinations within 60 days.
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