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On Monday, President Trump signed two proclamations adjusting tariffs on U.S. imports of steel and aluminum. Here, we break them down.

Steel: The first Feb. 10 proclamation reinstates 25% tariffs on imports of steel and certain steel derivatives, building on 2018 and 2020 proclamations from the president’s first term. It goes into effect March 12.

• The order cites a decline in U.S. capacity utilization to under 80%, increased imports from countries with “alternative arrangements” and product exclusions that cover a “significant volume” of imports for which the U.S. steel sector could produce goods.
• The 25% tariffs won’t apply to derivative steel products processed in other countries from steel that is melted and poured in the U.S. 

Aluminum: The second proclamation signed Monday increases a tariff on U.S. imports of aluminum and aluminum derivatives from 10% to 25%. It revises proclamations from 2020 and, like the steel proclamation, goes into effect March 12.

• It cites “global excess capacity” in aluminum markets driven by Chinese and South American overproduction, China’s increased investment in Mexico, transshipment (the circumventing of a tariff by shipping through a different country) and concerns about the comingling of primary aluminum from Russia and China with primary aluminum from other nations to produce aluminum products exported to the U.S.  

Product exclusions: The proclamations also terminate all product exclusions.

FTZs: Products admitted into a foreign trade zone—parts of the U.S. in which companies can use special customs procedures—will be subject to these duties when brought into the U.S. unless designated as “domestic status.”