U.S. Trade Policy and Tariff Actions
- Department of Commerce Bureau of Industry and Security (BIS) proposes limited expansion of Section 232 derivative articles within tariff scope: On Aug. 6, BIS published a Federal Register Notice (FRN) requesting public comments on the proposed expansion of Section 232 steel, aluminum, and copper tariffs to include 14 additional derivative products at a rate of up to 25%. Food processing and packaging machinery of 8422 and 8438 are not included in the list of 14 products proposed for inclusion. However, products in scope of the proposed expansion and which may be of interest to some PMMI Members include parts of heat exchange units of 8419.90.30 and parts of linear acting hydraulic power engines and motors of HS 8412.90005. The FRN highlights the continued efforts by the Trump Administration to expand Section 232 tariff action and the dynamic nature of the derivatives list.
- U.S. Senate passes Sanctioning Russia Act of 2026: On Aug. 7, the U.S. Senate voted to pass the Sanctioning Russia and Iran Act of 2026, which includes provisions giving the President new authorities to implement tariffs of up to 100% on third-party countries which purchase Russian or Iranian oil and/or natural gas. The House of Representatives has not yet voted on the proposed legislation and will not be able to consider the proposal until September, when the next legislative session is scheduled to start. While the proposal has some limited exemptions, if implemented imports from the EU, China, and India (among other countries) would be at risk of additional tariffs.
- U.S. Senate introduces “Trade Deficit Elimination Act” to codify Trump Administration deficit-focused tariff authority: On Aug. 6, Senators Rick Scott (R-FL), Kevin Cramer (R-ND), and Tim Sheely (R-MT) introduced the Trade Deficit Elimination Act of 2026, which would authorize the President to address trade deficits with trading partners through the implementation of tariffs on imports from countries which the U.S. has a trade deficit with. If implemented, the legislation would provide President Trump with the necessary delegated authority to re-implement widespread tariffs like the IEEPA tariffs which were invalidated earlier in the year by the U.S. Supreme Court on the grounds that Congress has not delegated broad tariff-setting power to the Executive Branch. It is unclear if the proposal has support from other members of Congress and the prospects of the legislation passing and being implemented.
Trade Policy Actions by Other Countries
- Japan imposes provisional anti-dumping duties of up to 55.3% on galvanized steel from China and South Korea: On Aug. 8, Japan implemented provisional anti-dumping duties on Chinese and South Korean origin hot-dipped galvanized steel in coils, sheets, and strips. Provisional anti-dumping duty rates range from 29.2% to 55.3% and will remain in effect through Dec. 7, 2026, pending final determination. The anti-dumping duties may have downstream effects for certain Japanese machinery manufacturers which use hot-dipped galvanized steel as an input for certain electric appliances such as refrigeration units.
