Once UK Deal Reflected in Federal Register, Tariffs Will Drop Within Seven Days
The additional in-quota Section 232 tariff rate for British cars will be 7.5% under a deal recently concluded with the U.K., so that the combined most-favored nation and 232 tariff will be 10% as long as imports are under the 100,000 annual tariff rate quota amount, beginning seven days after the June 16 executive order is published in the Federal Register.
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The same executive order said that automotive parts that are covered by Section 232 tariffs in the automotive sector also will only be subject to a 10% total tariff -- including MFN rates -- as long as they are of British origin and are for the use of U.K.-made vehicles.
The reduction in tariffs for auto parts, and the elimination of reciprocal tariffs and steel and aluminum derivative tariffs on civil aircraft parts, engines and helicopters will take effect after the administration publishes a Federal Register notice to modify the Harmonized Tariff Schedule, and that second Federal Register notice must be published within seven days after the first notice is published.
The executive order makes no changes to Section 232 steel and aluminum tariffs outside the aerospace sector, but says, "At a future time that the Secretary, in consultation with the United States Trade Representative, deems appropriate, the Secretary shall design and establish a tariff-rate quota" for steel and aluminum tariffs, after seeing how this agreement is implemented in the U.K., and, if there is a final agreement, how the U.K. implements that.