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Steel, Aluminum Makers Must Meet Strict U.S. Capacity Benchmarks to Cut Tariffs in Half

Canadian and Mexican steel and aluminum producers can reduce their Section 232 tariff rate from 50% to 25% by committing to verifiable capacity expansion in the United States, the Commerce Department announced last month. Manufacturers must identify specific expansion projects and submit certified documentation to qualify for the reduced rate. The agency will establish compliance milestones and require suppliers to submit regular, detailed reports tracking how shipments connect to approved initiatives. Trade lawyers warn that meticulous record-keeping proves critical. If suppliers fail to meet requirements, the Commerce Department can revoke reduced tariff eligibility and require full tariff payment. The process applies to producers supplying the U.S. auto and truck manufacturing sectors, creating significant administrative demands for exporters seeking tariff relief.