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Proc 10783ProclamationBiden · D Quiet signal

Proclamation 10783

Adjusting Imports of Steel Into the United States

This proclamation reinstates Section 232 tariffs on certain Mexican steel imports by imposing a "melt and pour" requirement. Steel articles and derivative steel articles from Mexico must now be melted and poured in Mexico, Canada, or the United States to qualify for tariff exemption; products melted and poured elsewhere face increased duty rates. The action reverses Mexico's 2019 exclusion from steel tariffs due to surging imports and low domestic capacity utilization.

Federal Register Open PDF 89 FR 57347

Impact dates

  1. HTSUS modifications effective; melt and pour requirements take effect for goods entered for consumption or withdrawn from warehouse

  2. CBP to implement melt and pour information requirements

Key directives

  • Establish melt and pour requirement for Mexican steel articles and derivative steel articles
  • Increase duty rate for Mexican steel melted/poured in countries other than Mexico, Canada, or U.S.
  • Importers must provide CBP with melt and pour country information
  • USTR shall advise President of import surges from Mexico and recommend appropriate means
  • CBP to implement information requirements as soon as practicable
  • President may direct CBP to remove Mexico's exclusion from tariffs if necessary

Who is ordered

Timeline

Immediate

  • HTSUS modifications effective July 10, 2024 at 12:01 a.m. EDT for goods entered for consumption or withdrawn from warehouse
  • Melt and pour requirement takes effect for Mexican steel articles
  • Increased duty rate applies to Mexican steel melted/poured outside Mexico/Canada/U.S.

Near term (90d)

  • CBP to implement melt and pour information requirements 'as soon as practicable'
  • USTR to monitor and advise on import surges from Mexico

Long term

  • Continued monitoring of agreement effectiveness with Mexico
  • Potential further tariff adjustments if surge conditions warrant
  • Ongoing U.S. steel industry capacity utilization tracking against 80% target

Risks & tensions

  • U.S.-Mexico trade relationship strain from reversing 2019 agreement
  • Potential retaliatory measures from Mexico
  • Implementation uncertainty: 'as soon as practicable' for CBP information requirements lacks specificity
  • Risk of supply chain disruption for U.S. manufacturers dependent on Mexican steel
  • Transshipment concerns through other countries to circumvent new rules
Proclamation 10783: Adjusting Imports of Steel Into the United States · Executive Orders