The Trump administration has quickly made international trade a focus with its America First Trade Policy, including a series of executive orders and proclamations imposing tariffs to address a host of different issues. Three main executive actions have emerged in February 2025.
First, the Trump administration announced executive orders on China, Canada and Mexico imposing tariffs to address the flow of illicit drugs. After announcing tariffs on Canada and Mexico of 25 percent, the Trump administration paused the tariffs for 30 days to negotiate a deal. However, no deal was offered to China and the 10-percent tariff is already in effect. Many goods imported from China are already covered by the 2018 Section 301 25-percent tariffs for intellectual property theft, effectively making the tariff rate a combined 35 percent.
On February 13, 2025, the Trump administration announced United States Trade Representatives (USTR) will prepare a report for imposing reciprocal tariffs on a country-by-country basis to tackle known unfair trade practices such as other countries’ higher tariffs, taxes and other policies affecting trade. The report will include recommendations on next steps, including proposed tariffs rates for each country and their goods.
Similarly, on February 10 and 11, the Trump administration also issued two proclamations modifying the Section 232 national security tariffs on steel and aluminum. These executive actions aim “to protect America’s steel and aluminum industries, which have been harmed by unfair trade practices and global excess capacity.” Beginning March 12, 2025, the proclamations expand the steel and aluminum tariffs to 25 percent and nullifying exemptions to various countries and ends the exclusion process for goods which cannot be sourced domestically. However, given the increasing volumes of imports, the Trump administration is now ending the exclusion process and applying the Section 232 tariffs to all imports of steel and aluminum into the United States. Further, the proclamations amend the Section 232 duties to cover “derivative” steel and aluminum products, including downstream metal products such as I-beams, rebar and aluminum extrusions.
While these 232 Tariffs establish a level playing field for U.S. steel and aluminum producers, it is important to note that this initial trade action also provides opportunity for producers to seek inclusion of additional derivative steel and derivative aluminum articles. Within 90 days from the date of the proclamations, the U.S. Department of Commerce (Commerce) is required to establish a process for U.S. manufacturers to request the Section 232 25-percent duties apply to additional steel and aluminum products. Within 60 days of receiving a request, Commerce will rule on whether to apply the Section 232 25-percent tariff to the named products. This is an opportunity for Pennsylvania manufacturers of downstream steel and aluminum goods to benefit from the Section 232 tariffs and regain market share in the U.S. market from unfairly low- priced imports.
Why is manufacturing so important?
Manufacturing in the United States plays a significant role in driving economic growth in the country. Manufacturing jobs provide good family sustaining wages that form the backbone of many communities. When manufacturers leave to other countries or are forced to shut down because unfair trade make it impossible to continue, it hurts the local economy. Manufacturing in our country ultimately improves the quality of life and enables communities to thrive by creating jobs where people live. U.S. manufacturers can protect their investments by working together and finding common ground to protect production and service.
To contact Carrie DelRosso or Milton Koch, visit bipc.com.
Carrie DelRosso is a senior advisor of Government Relations for Buchanan Ingersoll & Rooney PC.
Milton Koch is an international trade advisor for Buchanan Ingersoll & Rooney PC.
