The European Union (EU) and US Issue Joint Statement: On Thursday, 21 August, the US and the EU released a joint statement on the framework for the US-EU Agreement on Reciprocal Trade (White House statement; European Commission statement; European Commission Q&A). The joint statement confirms the 15% flat rate for EU goods into the United States which incorporates MFN (if less than MFN) rather than stacks on top of and notes both countries will coordinate to protect their respective markets from being flooded with excess supply of steel and aluminum. We will update once more details are available.
U.S. Section 232 Steel and Aluminum Updates: On Monday, 18 August, the U.S. Department of Commerce issued a Federal Register Notice expanding the list of steel and aluminum products subject to Section 232 duties effective 18 August. We wanted to provide additional information on the expanded scope. The expanded list includes 428 additional HS codes where the scope of products range from household appliances to consumer goods and goods in steel/aluminum packaging including a few food items. As a helpful resource, the law firm, ArentFox Schiff summarized the scope of the expanded tariff action by tariff categories and product category descriptions. The new list includes additions to chapter 73 articles of iron and steel and chapter 76 aluminum. Examples include tube/pipe fittings of iron/steel of 7307, aluminum wire, cables and bands of 7614, and aluminum cans, boxes, and containers of 7612 and 7613. PMMI members sourcing inputs should review the new list to see if their imports are subject to the expanded Section 232 scope.
Canada to Drop Retaliatory Tariffs Effective 1 September: On Friday, 22 August, it was widely reported that Canada will remove many of its retaliatory tariffs on the United States effective 1 September 2025. Processing and packaging machinery and equipment of HS codes 8422 and 8438 are not included in Canada’s current retaliation list. Prime Minister Carney indicated, Canada “will match the United States by removing all of Canada’s tariffs on U.S. goods specifically covered under CUSMA.” We are awaiting official announcement by Canada’s Government to understand how this will be operationalized. For instance, whether retaliatory tariffs will be applied on:
Non-USMCA/CUSMA-compliant goods that are listed on the retaliation list, or
All US goods that are not USMCA-compliant.
Mexico to Produce Joint Steel Committee with US to Bolster Ties: On Tuesday, 19 August, Mexico’s deputy Economy Minister for Trade, Luis Rosendo Gutiérrez Romano, said that Mexico is proposing to bring back a committee that would comprise of steel companies and government trade officials from both Mexico and the US. Bloomberg reports that the committee would be similar to the former North American Steel Trade Committee under the North American Free Trade Agreement (NAFTA). One goal of the committee would be to focus on measures aimed at increasing Mexico’s purchase of U.S. steel to replace steel imports from Asia. This proposal comes as Mexico is negotiating with the United States on lowering the Section 232 tariffs on steel and aluminum.
Global Postal Services to Stop Sending Low-Cost Parcels to US as Duty Exemption Ends: On Friday, 22 August, it was reported that global postal services, including Germany, Denmark, Sweden, Italy, France, Austria, Australia, and Switzerland, are halting parcel deliveries to the United States as duty-free de minimis treatment on all imports regardless of value, country of origin, and mode of transport will end 29 August. Per CBP guidance issued on 15 August, parcel duties would be based on the country-of-origin tariff rate. The removal of tariff exemptions for de minimis shipments, as reported earlier, could impact tariff costs on spare parts that PMMI members or their customers source from foreign markets.
Status of US Bilaterial Negotiations and Discussions: Please see the chart below for the latest on how countries are engaging with the United States in effort to reduce reciprocal tariffs.
