Steel, Aluminum Makers Face Records Gauntlet for New U.S. Tariff Breaks

Public Policy & Regulation attorney Micah Burbanks-Ivey was interviewed for a Manufacturing Dive article covering the U.S. Department of Commerce's new process allowing Canadian and Mexican steel and aluminum producers that supply the U.S. auto and truck industry to cut their Section 232 tariffs in half by committing to build or expand primary metal production in the U.S. The article details how companies can qualify for reducing the duties from 50 percent to 25 percent by submitting extensive certified documentation on specific capacity expansion projects, meeting milestones monitored by the Commerce Department and providing regular reports showing how shipments tie back to approved projects. Mr. Burbanks-Ivey mentioned eligible facilities could include mills, smelters, electric arc furnaces or casting lines, adding that companies with integrated supply chains across Canada, Mexico and the U.S. are well positioned to take advantage of the reduced tariff. He also emphasized that producers must demonstrate they are financially, contractually and operationally committed to expanding production in a verifiable and enforceable way, including through capital expenditure plans, executed construction or equipment contracts and related financing agreements.

"Suppliers should expect the government to evaluate milestones the same way lenders' investment and project managers would evaluate whether a major industrial project is progressing," he said.

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