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Steel, Aluminum Makers Must Clear High Bar for US Tariff Relief

Steel and aluminum producers in Canada and Mexico can cut their Section 232 tariffs in half to 25% if they invest in U.S. capacity expansion. However, the qualification process demands rigorous documentation and ongoing compliance monitoring.

The Commerce Department established the program last month for metal makers supplying North American auto and truck manufacturers. Producers must commit to specific capacity-expansion projects and submit certified documentation detailing those investments.

Participants face continuous milestones set and monitored by Commerce, requiring regular detailed reports linking shipments to approved projects. Trade lawyers warn that meticulous record-keeping is essential, as the agency can revoke reduced tariff status and demand full payment if suppliers fall short of requirements.

The intense compliance burden reflects the program's early stage and heightened scrutiny of tariff exemptions.