Section 232 – Not All Quotas Are Created Equal

Since March 2018, when President Trump exercised his authority under Section 232 of the Trade Expansion Act of 1962 to impose a 25 percent tariff on steel imports and a 10 percent import on aluminum, trade partners of the United States have made efforts to receive exemptions from the steel and aluminum tariffs. In several instances, the Department of Commerce used the leverage created by the Section 232 tariffs to negotiate tariff rate or absolute quotas with strategic allies. While Canada, Mexico, and Australia are now exempt from the Section 232 tariffs, the U.S. maintains quota deals with Argentina, Brazil, South Korea, the EU, Japan, and the United Kingdom. Despite all of these countries having quota deals with the U.S., these agreements do have key differences that importers need to understand.